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Hi, I'm having trouble to answer this question, if anyone can help me I will really appreciate it, thanks Consider the role of discount rates

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Hi, I'm having trouble to answer this question, if anyone can help me I will really appreciate it, thanks

image text in transcribed
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% rather than 10%? * O The amount spent now would be greater when the discount rate is 10%. O The discount rate is irrelevant because we are only considering net costs not net benefits. O We cannot use net present value for long time horizons. The amount spent now would be greater when the discount rate is 2%

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