Cost-benefit analysis often uses a discount rate (interest rate) to evaluate the merits of public policy proposals:
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Cost-benefit analysis often uses a discount rate (interest rate) to evaluate the merits of public policy proposals:
a. Identify one reason for using a discount rate that is equal to the prime rate charged to borrowers by a private bank.
b. Identify one reason for using a discount rate that is lower than the prime rate charged to borrowers by a private bank.
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Related Book For
Public Finance A Contemporary Application Of Theory To Policy
ISBN: 9780538754460
10th Edition
Authors: David N Hyman
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