After a meeting, the Federal Open Market Committee (FOMC) decides that the state of the economy warrants actions to increase real interest rates. a. As a result of the increase in real interest rates, consumption, investment, government spending, and net exports will all . b. With the increase in real interest rates, output will , inflation will , and unemployment will . c. Each of the following situations would cause the FOMC to consider increasing rates except one. The exception is a negative output gap and low inflation. high inflation and a large positive output gap. a large positive output gap. high inflation.

Aproduction line has three machines a, b, and c, with reliabilities of .96, .86, and .85, respectively. the machines are arranged so that if one breaks down, the others must shut down. engineers are weighing two alternative designs for increasing the line’s reliability. plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. in either case, three machines (a, b, and c) would be used with reliabilities equal to the original three. a. compute overall system reliability under plan 1. (round your intermediate calculations and final answer to 4 decimal places.) reliability b. compute overall system reliability under plan 2. (round your intermediate calculations and final answer to 4 decimal places.) reliability c. which plan will provide the higher reliability? plan2plan1