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Real Interest Rate

Now, when you play the Savings Game, you will have an additional piece of information displayed next to the Starting and Ending Balances: Market Data. An example of this new screen is shown below.

Market Data provides you the Real Interest Rate.

The Real Interest Rate is approximately equal to the difference between the interest rate paid on your Savings Account (Nominal Interest Rate) and the percentage by which the price of Food changes (Inflation Rate).


Real Interest Rate = Nominal Interest Rate - Inflation Rate



Negative Real Interest Rate

When the Real Interest Rate is negative, you are losing purchasing power and can afford less Food than before.

Positive Real Interest Rate

When the Real Interest Rate is positive, you are gaining purchasing power and can afford more Food than before.

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Starting Balances

Interest Earned Last Month

Total Cash

Ending Balances

Savings Account

Stock

units

Market Data

Real Interest Rate

%



Catalog

Food

Price:

My Cart

Name Quantity Total price



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