Multiple economic factors influence interest rates. Three types of interest rates, including real, nominal, and effective affect consumers' borrowing and investment choices. The nominal interest ...

A real interest rate is the difference between a nominal interest rate and the rate of inflation. Nominal interest rates are the rates set by financial institutions, such as banks and credit card ...

Unlike nominal GDP, real GDP accounts for changes in price levels and provides a more accurate figure of economic growth. The U.S. real GDP growth rate during the third quarter of 2024 (annualized).