Question

Asked Oct 31, 2019

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discuss the rationale behind the introduction of negative interest rate policies across economies worldwide.

discuss the effect of increasing the amount paid upfront when corporations make capital purchases focusing on benefits and drawbacks

discuss the significance of including the factor of inflation in corporate finance calculation

Step 1

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Step 2

**Meaning of negative interest rate policy:**

Negative interest rate policy (NIRP) is the tool which is used by central bank in monetary policy. Under NIRP, the nominal target interest rates are set at a negative value below zero percent theoretical lower limits.

Step 3

**Rationale behind NIRP:**

- This encourages individuals and businesses to spend, lend and invest money.
- Encourages banks to freely lend money.
- No incentive to hoard and h...

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