Describe why real interest rate is reward for saving


Why does it make sense to say that the interest rate is the price to rent money? Explain why the real interest rate is the reward for saving? Why does a mortgage typically have a lower interest rate than a car loan? Since 1950, the interest rate for corporate bonds have averaged a higher interest rate than long-term government bonds. Why?

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Finance Basics: Describe why real interest rate is reward for saving
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