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    When is the discount rate not stable over time?

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    Under what circumstances might it not be appropriate to assume that the discount rate is stable over time?

    © BrainMass Inc. brainmass.com December 24, 2021, 4:57 pm ad1c9bdddf

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    - In times of unstable economic conditions, eg. inflation and recession. Discount rates might also become unstable due to ...

    Solution Summary

    The solution presents three examples of situations when the discount rate might not be stable.