In applying the Ramsey formula for assessing net present value of climate changeprojects in a benefit-cost analysis, the effect of an increasing economic growth rate wouldbe to:a.favor investing in the climate change project.b. favor using those funds, i.e. consumption, today in alternative activities.O c.shift the pure rate of time preference to a larger number.Od.increase the net present value of the project.

Here, Net Present value: It refers to the cash flows that is all present with the firms. It is a…

In applying the Ramsey formula for assessing projects in a benefit-cost analysis, the effect a be to: a. favor investing in the climate change, O b. favor using those funds, i.e. consump shift the pure rate of time preference c.

In applying the Ramsey formula for assessing projects in a benefit-cost analysis, the effect a be to: a. favor investing in the climate change, O b. favor using those funds, i.e. consump shift the pure rate of time preference c.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 12SCQ: Why dues productivity growth in high-income economies not slow down as it runs into diminishing...

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