In Exhibit 20-6, if the interest rate falls from i 1 to i 2, then: the quantity demanded of investment decreases from I2 to I1 and investment spending shifts the aggregate demand curve from AD1 to AD2, decreasing the level of real GDP. the quantity demanded of investment increases from I1 to I2 and investment spending shifts the aggregate demand curve from AD1 to AD2, increasing the level of real GDP. the quantity demanded of investment decreases from I2 to I1 and investment spending shifts the aggregate demand curve from AD2 to AD1, increasing the level of real GDP. the quantity demanded of investment increases from I1 to I2 and investment spending shifts the aggregate demand curve from AD2 to AD1, decreasing the level of real GDP.

In transportation model analysis, the stepping-stone method is used to: a. obtain an initial feasible solutionb. evaluate empty cells for possible degeneracyc. evaluate empty cells for potential solution improvementsd. identify a dummy origin pointe. balance supply and demand

How should the environmental effects be dealt with when evaluating this project? the environmental effects should be ignored since the plant is legal without mitigation. the environmental effects should be treated as a sunk cost and therefore ignored. if the utility mitigates for the environmental effects, the project is not acceptable. however, before the company chooses to do the project without mitigation, it needs to make sure that any costs of "ill will" for not mitigating for the environmental effects have been considered in the original analysis. the environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur. the environmental effects if not mitigated would result in additional cash flows. therefore, since the plant is legal without mitigation, there are no benefits to performing a "no mitigation" analysis.

Marge is told by a jeweler that a particular diamond priced at $10,000 in which she is interested cannot be obtained anywhere else for under $15,000. later that day, she finds a diamond of comparable quality priced at $8,000 at another jewelry store. the first jeweler is liable for: