real interest rate

Definition

The current interest rate minus the current inflation rate.

Use real interest rate in a sentence

The real interest rate was determined to be best to use, because the recently increased inflation rate affects our project significantly.

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Many borrowers enjoy negative real interest rates on their fixed rate loans because inflation has increased substaintially since the original debt contracts were written.

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Not everyone always truly understand the real interest rate of a car when you buy it from a dealership with a fast talking sales man and you interest to get rid of your old car and many people jump too quickly.

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ex ante real interest rate International Fisher Effect