How can a country’s inflation rate influence the contractual payment

1.	How can a country’s inflation rate influence the contractual payment policy?
Answer» Answer: EXPLANATION: MANY long-term contracts build in an adjustment for inflation. People whose contract payments are fixed will suffer a LOSS in real terms (that is, in terms of purchasing power) if inflation TURNS out higher than they expected. Hope it Helps!!

How can a country’s inflation rate influence the contractual payment policy?

Answer»

Answer:

MANY long-term contracts build in an adjustment for inflation. People whose contract payments are fixed will suffer a LOSS in real terms (that is, in terms of purchasing power) if inflation TURNS out higher than they expected.

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How can a country’s inflation rate influence the contractual payment policy?

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