Search results
Results from the WOW.Com Content Network
The nominal value of a commodity bundle tends to change over time. In contrast, by definition, the real value of the commodity bundle in aggregate remains the same over time. The real values of individual goods or commodities may rise or fall against each other, in relative terms, but a representative commodity bundle as a whole retains its ...
Nominal sizes may be well-standardized across an industry, or may be proprietary to one manufacturer. Applying the nominal size across domains requires understanding of the size systems in both areas; for example, someone wishing to select a drill bit to clear a "1 ⁄ 4-inch screw" may consult tables to show the proper drill bit size. Someone ...
The nominal interest rate is the simple interest charged on a loan or paid on a deposit. Real interest is nominal interest after taking inflation's effects into account. Economists, as well as ...
In this analysis, the nominal rate is the stated rate, and the real interest rate is the interest after the expected losses due to inflation. Since the future inflation rate can only be estimated, the ex ante and ex post (before and after the fact) real interest rates may be different; the premium paid to actual inflation (higher or lower).
Real interest rates measure the compensation for expected losses due to default and regulatory changes as well as measuring the time value of money; they differ from nominal rates of interest by excluding the inflation compensation component.
Real GDP is an example of the distinction between real and nominal values in economics.Nominal gross domestic product is defined as the market value of all final goods produced in a geographical region, usually a country; this depends on the quantities of goods and services produced, and their respective prices.
The Fisher equation can be used in the analysis of bonds.The real return on a bond is roughly equivalent to the nominal interest rate minus the expected inflation rate. But if actual inflation exceeds expected inflation during the life of the bond, the bondholder's real return will suffer.
Real value may refer to: Real versus nominal value: real values are the actual values of something while nominal values are the stated values of something; Real and nominal value: real values are adjusted for the changes in the value of currency; nominal values are not; A mathematical value that is a real number