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elbthwtkns01 elbthwtkns01
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5 years ago
Which of the following statements best captures the intuitive reason behind discounting?

• Since incomes rise over time, discounting means that we place less weight on benefits and costs today and more weight on benefits in the future.

• Since dollars today can be invested, to obtain $1 in the future we have to give up less than $1 today. Hence future benefits and costs are given more weight than benefits and costs today.

• Since dollars today can be invested, yielding a positive return, discounting places more weight on future returns.

• Since investments yield a return, we have to give up less than $1 today to obtain $1 in future benefits. Hence we place less weight on future benefits and costs than we would on benefits and costs that dollars occur today.
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Introduction to Agricultural Economics

Introduction to Agricultural Economics


Edition: 7th
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Strategyboyz21Strategyboyz21
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elbthwtkns01 Author
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5 years ago
This calls for a celebration Person Raising Both Hands in Celebration
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