In a recent cost-benefit analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government used a 8% social discount rate. If it had used an 10% social discount rate instead, then the net present value of the policy would have been if it had used a 4% social discount rate, then the net present value of the policy would have been O a. higher; higher. O b. lower; higher. O c. lower; lower. O d. higher; lower.

In a recent cost-benefit analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government used a 8% social discount rate. If it had used an 10% social discount rate instead, then the net present value of the policy would have been if it had used a 4% social discount rate, then the net present value of the policy would have been O a. higher; higher. O b. lower; higher. O c. lower; lower. O d. higher; lower.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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