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Ch. 11-Measuring the Cost of Living
N/A
7
Economics
Undergraduate 2
12/07/2015

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Term
Nominal Interest Rate
Definition
The interest rate as usually reported without a correction for the effects of inflation.
Term
Indexed
Definition
The automatic correction by law or contract of a dollar amount for the effects of inflation.
Term
Producer Price Index
Definition
A measure of the cost of a basket of goods & services bought by firms.
Term
Real Interest Rate
Definition
The interest rate corrected for by the effects of inflation.
Term
Inflation Rate
Definition
The percentage change in the price index from the preceding period.
Term
Consumer Price Index (CPI)
Definition
A measure of the overall cost of goods & services bought by a consumer.
Term
Indexation
Definition
The automatic correction by law or contract of a dollar amount for the effects of inflation.
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