In a recent benefit-cost analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government-used a 5% social discount rate. If it had instead used a 7% social discount rate, the net present value of the policy would have been; if it had used a 10% social discount rate, the net present value would have been Select one:

In a recent benefit-cost analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government-used a 5% social discount rate. If it had instead used a 7% social discount rate, the net present value of the policy would have been; if it had used a 10% social discount rate, the net present value would have been Select one:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Robert G. Flanders Jr., the state-appointed receiver for Central Falls, RI, said his city's declaration of bankruptcy had proved invaluable in helping it cut costs. Before the city declared bankruptcy, he said, he had found it impossible to wring meaningful concessions out of the city's unions and retirees, who were being asked to give up roughly half of the pensions they had earned as the city ran out of cash. True or False: In negotiations with unions, cities without the ability to file bankruptcy have a higher disagreement value than cities with the ability to file bankruptcy. True False
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