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Question - A person begins a fake news story by telling it to three people. Call this Generation 1. Each of those three people tells the story to three different people. Call this Generation 2. Now each of the people in Generation 2 tells the story to three different people. This is Generation 3. For each of the following parts, assume no one tells the story to a person who has already heard the story and that once a person tells the story to three other people, that person does not tell the story again.
(a) How many people will hear the story in Generation 1?
(b) How many people will hear the story in Generation 2?
(c) How many people will hear the story in Generation 3?
(d) What is the percentage increase in the number of people who will hear the story from one Generation to another?
(e) Write an exponential function for the number of people, P who will hear the story in the nth Generation.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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