Calculates benefit cost ratio using current dollars, Microeconomics

When there is a positive expected rate of inflation (i.e., an expected and sustained increase in the levels of all prices), the Benefit Cost Ratio of a proposed project will take on different values depending upon whether one calculates it using current dollars or constant dollars.

Define

what are current dollars ?

Posted Date: 2/19/2013 2:06:08 AM | Location : United States







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