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Unformatted text preview: eference” is
A. the rate at which future costs and benefits are discounted in CBA.
B. the rate at which individuals discount future consumption relative to current
consumption.
C. the interest rate paid on “preferred bonds” (those with zero risk).
D. All of the above.
18. The “investment rate of return” is
A. the return reaped tomorrow from investing today
B. is the interest rate at which borrowing to invest yields zero benefit.
C. the interest rate paid on “preferred bonds” (those with zero risk).
D. None of the above. 51 19. If the interest rate is 10% then the present value of $110 received one year from today
is
A. $11
B. $100
C. $110
D. $121
20. If the interest rate is 3% then the present value of $100 received in four years time is
A. $24.27
B. $35.01
C. $88.85
D. $97.09
21. The public sector discount rate (PSDR) is
A. the rate at which benefits are discounted in CBA.
B. the rate at which costs are discounted in CBA.
C. is typically less than market interest rates.
D. Al...
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This document was uploaded on 03/03/2014.
 Spring '14
 Economics

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