Consider a policy that has benefits and costs that accrue in the following way: Year 0: Benefits = 0, Costs = 100 Year 1: Benefits = 20, Costs = 20 Year 2: Benefits = 40, Costs = 20 Year 3: Benefits = 60, Costs = 20 %3D Year 4: Benefits = 75, Costs = 20 %3D If the social discount rate is 8%, then the net present value of the policy is $__. Please round your final answer to two digits if necessary.

Q: I need help working through this problem

A: Market clearing price and quantity is archived where both seller and buyer agree to exchange their…

Q: An agricultural seed company has an inverse demand given by: P = 120 - 2Q, and a cost function given…

A: Note : In case of multiple questions , we answer only the first question.  The answer to your first…

Q: (Trade Restrictions) Suppose that the world price for steel is below the U.S. domestic price, but…

A: When a country wants to restrict its imports of foreign goods it can use two devices: Tariffs…

Q: How to save towards purchasing a home

A: Savings are amount of money that remain after subtracting a person's consumer spending from their…

Q: what affects the way you spend money the most?

A: The way we spend money is influenced by a variety of factors. The most significant of these are…

Q: Please answer full questions including fill in the blanks.

A: When an initial injection into a circular flow results in a larger ultimate rise in real national…

Q: Please write more clearly.

A: Production function shows the relationship between the inputs used and output produced. The marginal…

Q: Tutorial

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first…

Q: What is TARP?

A: The term TAPR stands for Troubled Asset Relief Program.

Q: Why are families so important to the American economy?

A: Rising monetary disparity in the United States and all over the planet is broadly considered a…

Q: i need help with all of them

A: The government uses price controls to exert direct influence over market prices. It has an impact on…

Q: How is the Purchasing power important?

A: Answer - Purchasing Power - Purchasing power is overall buying capacity of country which is…

Q: What important informations are required in evaluations?

A: Evaluation can be understood as a systematic and objective assessment of an ongoing or completed…

Q: What are some mandates and compliance regulations that protect people's identity and privacy?

A: Concept Privacy refers to a person's ability to control when, how, and to what extent their personal…

Q: Where do you get the number 11?

A: Given, Marginal propensity to save (mps)=0.2 Marginal propensity to import (mpm)=0.1 Marginal income…

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.