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Private Saving: Public Saving: National Saving (Saving)
www.csun.eduMacroeconomics Topic 4: “Explain that interest rates are determined ... Introduction to the Loanable Funds Market ... For example, if the nominal interest rate is at 4%, and the inflation rate is at 2.5%, the real interest rate will be 1.5%, because real interest rate = 4% - 2.5% = 1.5%.