Macroeconomics
If the nominal interest rate is 7% and the inflation rate is 2%, what is the real interest rate?
If your salary is \$50,000 and inflation is 5%, what is the real value of your salary in terms of purchasing power?
What does the Fisher Equation help to determine?
How do negative real interest rates affect long-term savings?
If you have \$1,000 in savings with a nominal interest rate of 3% and inflation is 1%, what is the real change in purchasing power after one year?
Why is the Fisher Equation important in economic analysis?
Using the Fisher Equation, if the nominal interest rate is 8% and the inflation rate is 3%, what is the approximate real interest rate?
If the nominal interest rate is 10% and the inflation rate is 4%, what is the real interest rate?
If inflation causes the price of a basket of goods to increase from \$100 to \$110, what is the percentage decrease in purchasing power if your income remains the same?
What is a potential consequence of negative real interest rates on savings?