| Author: | Hak Choi | ISBN: | 1230002047164 |
| Publisher: | Hak Choi | Publication: | December 13, 2017 |
| Imprint: | Language: | English |
| Author: | Hak Choi |
| ISBN: | 1230002047164 |
| Publisher: | Hak Choi |
| Publication: | December 13, 2017 |
| Imprint: | |
| Language: | English |
If your wage rate originally was $100, then there is inflation of 10%, your real wage rate becomes $90. Perhaps, you may ask your boss to give you $110 nominal wage rate, so that your real wage rate remains unchanged.
When you have deposited $100 with a bank, and the interest rate was 10%. But inflation is also 10%, so your real interest rate is 0%. Can you ask the bank for 20% nominal interest rate, so that your real interest rate remains unchanged?
What the bank did not give you, this book gives.
If your wage rate originally was $100, then there is inflation of 10%, your real wage rate becomes $90. Perhaps, you may ask your boss to give you $110 nominal wage rate, so that your real wage rate remains unchanged.
When you have deposited $100 with a bank, and the interest rate was 10%. But inflation is also 10%, so your real interest rate is 0%. Can you ask the bank for 20% nominal interest rate, so that your real interest rate remains unchanged?
What the bank did not give you, this book gives.
