what is the effects of this to firm value?decrease or increase? An expected increase in inflation causes generally higher interest rates, and hence, the discount rate increases.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter13: Inflation
Section: Chapter Questions
Problem 12SQ
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what is the effects of this to firm value?decrease or increase?

An expected increase in inflation causes generally higher interest rates, and hence, the discount rate increases. 

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