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CHAPTER FOUR: The Level of Interest Rates > LEARNING OBJECTIVES
LEARNING OBJECTIVES
- Define the concept of an interest rate and explain the role of interest rates in the economy.
- Define the concept of the real interest rate and explain what causes the real interest rate to rise and fall.
- Explain how inflation affects interest rates.
- Calculate the realized real rate of return on an investment.
- Explain how economists and financial decision makers forecast interest rates.
