Suppose government expenditures on goods and services increase, transfers are unchanged, and taxes rise by less than the increase in expenditures. These changes in the government’s budget cause

a. both the equilibrium interest rate and the equilibrium quantity of loanable funds to fall.
b. both the equilibrium interest rate and the equilibrium quantity of loanable funds to rise.
c. the equilibrium interest rate to rise and the equilibrium quantity of loanable funds to fall.
d. the equilibrium interest rate to fall and the equilibrium quantity of loanable funds to rise.

Amachine that produces a special type of transistor (a component of computers) has a 2% defective rate. the production is considered a random process where each transistor is independent of the others. (a) what is the probability that the 10th transistor produced is the first with a defect? (b) what is the probability that the machine produces no defective transistors in a batch of 100? (c) on average, how many transistors would you expect to be produced before the first with a defect? what is the standard deviation? (d) another machine that also produces transistors has a 5% defective rate where each transistor is produced independent of the others. on average how many transistors would you expect to be produced with this machine before the first with a defect? what is the standard deviation? (e) based on your answers to parts (c) and (d), how does increasing the probability of an event a↵ect the mean and standard deviation of the wait time until success?