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

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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

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Expert Answer

Step 1

“Hey, since there are multiple questions posted, we will answer first question. If you want any specific question to be answered then please submit that question only. Thank you”

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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