5. (i) Explain the following concepts.

(a) business fixed investment

(b) Capital A/C.

(c) Net factor income from abroad.

(ii) Assume people of the country expect inflation to be equal to 5% by the end of the 20th century but in fact prices rise by 20% over these 10 decades. Describe how this unexpectedly high inflation rate would help or hurt the following :

(a) A firm that provides nominal pension when workers retires.

(b) A person taking out a mortgage in 1950 for 50 years.