positive inflation

Is Nominal Interest Rate Always Greater Than Real Interest Rate?

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Is Nominal Interest Rate Always Greater Than Real Interest Rate? With positive inflation, the nominal interest rate is higher than the real interest rate. Effectively, the real interest rate is the nominal interest adjusted for the rate of inflation. It allows consumers and investors to make better decisions about their loans and investments. Why real

What Is The Relationship Between GDP And Inflation?

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What Is The Relationship Between GDP And Inflation? An increase in inflation means that prices have risen. With an increase in inflation, there is a decline in the purchasing power of money, which reduces consumption and therefore GDP decreases. Does real GDP increase with inflation? Real GDP takes into consideration adjustments for changes in inflation.