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Q. Relation between nominal and real interest rate?
Relation between nominal interest rate, real interest rate and inflation
If we signify the nominal interest rate by R, real rate by r and expected inflation by pe then real interest rate is defined by:
r = R-pe or R=r+pe
Determine the Economic functions of money There are three functions of economics of money - A medium of exchange. - A unit of account - Store of value.
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# ???? .. difference between gdp at market price and nnp at factor cost
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