Capital Markets Chapter 24. Nominal and Real Interest Rates Nominal return represents how much money you will receive after 1 year for giving up 1 dollar.
GNP = Expenditure on a Country’s Goods and Services Y = C d + I d + G d + EX = (C-C f ) + (I-I f ) + (G-G f ) + EX = C + I + G + EX – (C f + I f +G f )