The Discount Rate Used in the Determination of the Value

question 41

True/False

The discount rate used in the determination of the value in use of an asset may be selected from rates used for similar assets in the market.

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Definitions:

Unemployment

The situation of being without a job, while actively looking for one and willing to work.

Short-Run Phillips

A concept that shows an inverse relationship between the rate of unemployment and the rate of inflation in an economy over a short period of time.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time.

Unemployment Rate

The percentage of the labor force that is unemployed.