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.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 7PA

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