You expect interest rates to decline over the next six months. a. given your interest rate outlook, state what kinds of bonds you want in your portfolio in terms of duration, and explain your reasoning for this choice. b. you must make a choice between the following three sets of noncallable bonds. for each set, select thebond that would be best for your portfolio, given your interest rate outlook and the consequent strategy set forth in part a. in each case, briefly discuss why you selected the bond.

Feedback systems do not always involve negative feedback. economic inflation, which is evidenced by continually rising prices, is a positive feedback system. a positive feedback control system, as shown on the right, adds the feedback signal to the input signal, and the resulting signal is used as the input to the process. a simple model of the price-wage inflationary spiral is shown on the right. add additional feedback loops, such as legislative control or control of the tax rate, to stabilize the system. it is assumed that an increase in workers’ salaries, after some time delay, results an increase in prices. under what conditions could prices be stabilized by falsifying or delaying the availability of cost-ofliving data? how would a national wage and price economic guideline program affect the feedback system?