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When a subsidy program allocates subsidies to a subset of the population, the result is greater demand and higher prices in the market where purchases are subsidized, raising costs for
Incremental Borrowing Rate
This is the interest rate a company would have to pay if it borrows funds to finance a lease transaction, used in lease accounting to measure lease liabilities under accounting standards.
Implicit Rate
An interest rate implicit in the terms of a lease or other contract, representing the lessor's cost of capital or the lessee's incremental borrowing rate, not explicitly stated.
Leveraged Lease
A leasing arrangement in which the lessor uses borrowed funds to acquire the asset that is then leased out, allowing the lessor to benefit from tax advantages and leverage.
Operating Lease
A contract that allows for the use of an asset but does not transfer ownership of the asset to the lessee.
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