Economics, 3rd Edition

810  GLOSSARY

nominal exchange rate 

the rate at which a person can trade 

the currency of one country for the currency of another

nominal interest rate 

the interest rate as usually reported 

without a correction for the effects of inflation

nominal variables 

variables measured in monetary units

non-price competition 

a situation where two or more firms 

seek to increase demand and market share by methods other 

than through changing price

nonstationary data 

time series data where the mean value 

can either rise or fall over time

normal good 

a good for which, ceteris paribus, an increase in 

income leads to an increase in demand (and vice versa)

normal profit 

the minimum amount required to keep factors of 

production in their current use