Respuesta :
Assuming that original equilibrium nominal interest rate is restored, and real interest rate turns out to be lower, it means that price level has increased, that is inflation is positive.
An interest rate that has recently been adjusted to take inflation into account is known as a real interest rate. Once adjusted, it reflects the genuine cost of borrowing money for a debtor and the actual yield earned by a lender or investment.
A real interest rate depicts the pace during which present things are favored over future consumption over time. The discrepancy between both the nominal interest rate and inflation is used to determine the real interest rate for an investment. Impact of Inflation on Investment Gains' Buying Power. When inflation is on the rise, the real interest rate will decrease than that of the nominal interest rate being offered.
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