💶ap macroeconomics review

Fisher equation

Written by the Fiveable Content Team • Last updated August 2025
Verified for the 2027 exam
Verified for the 2027 examWritten by the Fiveable Content Team • Last updated August 2025

Definition

The relationship expressing that the real interest rate approximately equals the nominal interest rate minus the inflation rate (r ≈ i - π).

AP course connection

Topic 4.2: 4.2 Nominal vs. Real Interest Rates

Unit 4

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