Inflation premium
Describe the term Inflation premium and how it is the prospect of future inflation?
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Inflation premium: It is the prospect of future inflation, very strongly affects the shape of the term structure. Investors thinking regarding loaning money for different lengths of time recognize that future inflation erodes the value of dollars which will be returned. As an outcome, investors demand compensation for such loss in the form of maximum nominal rates. This extra compensation is termed as inflation premium.
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When this firm produces 5,000 units of output monthly in this demonstrated figure, in that case its total variable costs equal as: (w) $75,000 per month. (x) $15,000 per month. (y) $18,000 per month. (z) $3,000 per month. Discover Q & A Leading Solution Library Avail More Than 1416663 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1944900 Asked 3,689 Active Tutors 1416663 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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