The nominal interest rate minus the expected rate of inflation ---

The nominal interest rate minus the expected rate of inflation --- ?

Created: 1 week ago | Updated: 1 week ago | Created By:

Imran Ahmed

defines real interest rate

is a less accurate measure of the incentives to borrow

is a less accurate indicator of tightness of credit market

defines discount rate

0 1

Best Answer Explained in Below-:

The Fisher Effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate. Therefore, real interest rates fall as inflation increases, unless nominal rates increase at the same rate as inflation.

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The nominal interest rate minus the expected rate of inflation --- ?

Intermediaries, who are agents of investors and match buyers with sellers of securities are called ---

Finance companies ----

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