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which statement correctly describes the effect of inflation? Inflation provides an incentive for a company to avoid high-risk investments Inflation affects the purchasing power of

which statement correctly describes the effect of inflation?

Inflation provides an incentive for a company to avoid high-risk investments

Inflation affects the purchasing power of the original investment

Inflation decreases over time and thus increases the future cash flows of the investment

Inflation causes capital constraints that prevent a company form taking on multiple projects

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