If a climate change analyst applies a discount rate of 2 percent to losses expected in 300

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If a climate change analyst applies a discount rate of 2 percent to losses expected in 300 years’ time, how much, per $1 of expected loss, might she be willing to spend today to avoid those losses? Would your answer be higher or lower if the losses were expected sooner? Explain your answer.

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Money Banking And Financial Markets

ISBN: 9781260226782

6th Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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