The social discount rate is similar to the private discount rate except it incorporates a social rate of time preference that reflects the government's cost of borrowing which is typically lower than that of the private sector.

Question

Quizplus · Accepted Answer

The statement accurately describes the social discount rate, which adjusts the private discount rate by incorporating the government's cost of borrowing, reflecting the wider social implications of a decision.

The Social Discount Rate Is Similar to the Private Discount