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Suppose the government is considering funding a road constructionproject, and must borrow to do so.When performing a cost-bene?tanalysis of this project, what discount rate should the governmentuse?Suppose that this project is expected to have large spillovers,an enable ?rms to be more productive, as well as saving many livesin the future; how does this affect the discount rate the governmentshould use?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91523440

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