In a recent benefit-cost analysis of a proposed regulation that generated positive net benefitsin the present but negative net benefits in the future, the government used a 7% socialdiscount rate. If it had instead used a 8% social discount rate, the present value of thepolicy's net benefits would have been ; if it had used a 6% social discount rate, thepresent value of the policy's net benefits would have beenA) Lower; lower.B) Lower; higher.C) Higher; lower.D) Higher; higher.

The question is asking about the impact of changing the social discount rate on the present value of…

Answered: In a recent benefit-cost analysis of a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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