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6 Cards in this Set

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  • Back
consumer price index (CPI)
A measure of the overall cost of the goods and services bought by a typical consumer.
indexation
The automatic correction by law or contract of a dollar amount for the effects of inflation.
inflation rate
The percentage change in the price index from the preceding period.
nominal interest rate
The interest rate as usually reported without a correction for the effects of inflation.
producer price index
A measure of the cost of a basket of goods and services bought by firms.
real interest rate
The interest rate corrected for the effects of inflation.