last meeting we’ve discussed the real and nominal interest rates,

As mentioned, when we say real interest rate it accounts for the rate of inflation, the interest rate is
adjusted to remove the effects of inflation and gives the real rate of a bond or loan. On the other hand,
the nominal interest rate does not account for inflation.

It was also pondered that interest and inflation are inversely correlated. Whereby when interest rates
are low, inflation increases and that makes the economy grow. Conversely, when the interest rates are
high, inflation decreases and that makes the economy slow.

The question was also raised with regards to the factors in determining or affecting interest rates such
as the aggregate supply and demand.