Define real rate of interest-00194
This subjective question is related to the book/course
vu cs101 Introduction to Computing.
It can also be found in
vu cs101 Mid Term Solved Past Paper No. 1.
Question 1: Define real rate of interest
Answer:
Real Rate of Interest
- When real rate is high; all interest rates will tend to be higher and vice versa.
- Thus real rate does not really determine the shape of the term structure rather it influences the overall level of interest rates
