Responses must be 100 words or less, must be clear and concise.

Explain what is meant by a real interest rate.

Explain what is meant by a nominal interest rate.

Explain what is meant by a real cash flow.

Explain what is meant by a nominal cash flow.

The difference between the real and nominal interest rate is that the real interest rate is equal to the nominal interest rate less the expected inflation. (Elaborate on this)