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1.) A step-up transformer increases the voltage of the current as it leaves the power plant. After the voltage has been increased, less current travels through the high-voltage power lines. This reduces the amount of power that is lost due to resistance of the power lines.

2.) They have electric transformers, which use electromagnetic induction to change the voltage of the current. Some transformers increase the voltage; others decrease the voltage. Therefore, one or more step-down transformers are needed to decrease the voltage of current before it enters homes.

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