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Unformatted text preview: 11) The OMBs use the historic pretax private investment return for public investments recognizes its competition by trying to keep the rates competitive. The opportunity cost of public borrowing is private borrowing, and these rates should be similar. The cost of government borrowing may be a better measure of the discounted value of an asset, because an asset is purchased with current money and is expected to yield a stream of benefits over time....
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This note was uploaded on 09/22/2011 for the course ECONOMICS 6311 taught by Professor Segerson during the Spring '10 term at UConn.
- Spring '10