How would the maximum amount spent now


Problem

Consider the role of discount rates in problems involving long time horizons such as climate change. Suppose that a particular emissions abatement strategy would result in a $500 billion reduction in damages 50 years into the future. How would the maximum amount spent now to eliminate those damages change if the discount rate is 2 percent, rather than 10 percent?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How would the maximum amount spent now
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