4.2:

Question 1

Is 50% interest rate good?

Answer 1

Are you the borrower or lender

What is the inflation rate

Question 2

Nominal Interest Rate

Answer 2

The percentage increase in money that the borrower pays ( not adjusted for inflation)

Nominal = real interest + expected inflation

Question 3

Real Interest Rates

Answer 3

The percentage increase in purchasing power that a borrower pays ( adjusted to inflation)

Real = nominal interest rates- expected inflation