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    Exam 7: Effects of Inflation and Yield Curves on Stock Prices and Investments
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    If a Business Firm Enters into Nominal Contracts That Fix
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If a Business Firm Enters into Nominal Contracts That Fix

Question 86

Question 86

True/False

If a business firm enters into nominal contracts that fix its revenue at a constant level and inflation turns out to be less than expected the firm's stock price is likely to fall, other factors held constant.

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