Problems and Applications Q9 Investment can be increased both by reducing taxes on private saving and by reducing the government budget deficit. Average: /2 True or False: It is possible to implement both of these policies at the same time because reducing taxes on private spending has the effect of decreasing the government budget deficit. a. True b. FalseWhat would you need to know in order to judge which of these two policies would be a more effective way to raise investment? Check all that apply. a. The elasticity of private saving with respect to the after-tax real interest rate b. The responsiveness of private saving to increases in investment c. The response of private saving to changes in the government budget deficit

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