Answer: True. When inflation was expected to be high and it turns out to be low, wealth is redistributed from debtors to creditors.
Explanation: If inflation is high, money is not moving as it normally would in a low inflation time. When inflation is low, money is moving more freely (people are spending) to the debtors and the creditors. Inflation refers to the increase in prices and fall in the purchasing value of money.
Answer:
C) Displacement
Explanation:
Based on the information provided within the question it can be said that this scenario best illustrates the use of a defense mechanism known as Displacement. In the context of psychology, this mechanism is when negative feelings are transferred from the main source towards something that the individual is less scared of, either another person or object. Which is what is happening in this scenario as each individual takes their anger out on the person their less threatened by.
Answer:
e. Discount rate that results in a net present value equal to the project cost.
Explanation:
The internal rate of return is the discounted rate of return at which the net present value is zero that shows the initial investment or the invested amount should be equal to the yearly cash flows present value after considering the discounting factor
Hence, the correct option is e as it defines the internal rate of return
Answer: E) The company expects a constant weighted average cost of capital.
Explanation: The explicit forecast period in most organisations are usually made between five to about fifteen years,this is to ensure that enough timeline is given to effectively capture all the necessary information to do proper forecast.
The only option that is not a desirable feature of the steady state is that. The company expects a constant weighted average cost of capital. All other options are desirable feature because they have positive impact on the business and will make a good forcast.