In a recent benefit-cost analysis of a proposed regulation that generated negative net benefits in the present but positive net benefits in the future, the government used a 7% social discount rate. If it had instead used a 8% social discount rate, the net present value of the policy would have been if it had used a 6% social discount rate, the net present value would have been Select one: O a. higher; lower. O b. lower; higher. O c. lower; lower. Od. higher; higher.
In a recent benefit-cost analysis of a proposed regulation that generated negative net benefits in the present but positive net benefits in the future, the government used a 7% social discount rate. If it had instead used a 8% social discount rate, the net present value of the policy would have been if it had used a 6% social discount rate, the net present value would have been Select one: O a. higher; lower. O b. lower; higher. O c. lower; lower. Od. higher; higher.
Chapter12: The Partial Equilibrium Competitive Model
Section: Chapter Questions
Problem 12.11P
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