Types of rate of interest in economics
That's why when the interest rates you have to pay on loans are low, the interest rates you can earn on savings are even lower. Banks actually use two types of This compensation is called the “real interest rate.” Economists have attributed the movement in interest rates to changes in inflation, or its expected level. 2 Nov 2016 The kind of interest rate we're all familiar with is called a nominal interest rate. It measures the amount of money we earn in a year on a saving