Marginal propensity to consume 0.9 marginal propensity to import 0 autonomous consumption 3 exports 0 private investment 2 income tax rate 0 government expenditures 0 Income consumption investment aggregate expenditures 0 10 20 30 40 50 60 70 80 What is the equilibrium GDP?

Consider the following two projects. both have costs of $5,000 in year 1. project 1 provides benefits of $2,000 in each of the first four years only. the second provides benefits of $2,000 for each of years 6 to 10 only. compute the net benefits using a discount rate of 6 percent. repeat using a discount rate of 12 percent. what can you conclude from this exercise?