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Dum-Dum sales has to process the orders for tickets after then come in. The orders are batched until the end of the day and then processed. For this part of the process Fred and Ethel also use the operator (Lucy) as part of the process. This is a standardized operation so we can assume that the processing times are deterministic. Fred checks each order for accuracy, this takes 1 minute. Ethel, then addresses an envelope to mail the tickets out. She can do 20 of these per hour. Lucy, then stamps the envelope and puts into an out-box for the postal service to pick up the next day. This takes 2 minutes. This system runs for an hour when a special order arrives. This customer wants to come pick up his order in 30 minutes since he lives in the dorm across the street.
a. If this order arrives 1 hour after this process started will the tickets be ready when the customer arrives without changing the structure of the system or the order in which jobs are done?
b. Fred and Ethel get into a fight (again)! Fred screams, "Ethel you are a super-Dum-Dum. We are losing money because you are slowing up the whole process." Lucy has an idea, "Lets make it so that Fred cannot pass a job to Ethel if there are 2 or more orders in the space between them." The Dum-Dum twins agree to give the new system a try on the following night. A call comes in after 1 hour with this process running. This customer wants to come pick his order up after 10 minutes. Can they fill the order without changing the order in which jobs are processed or the structure of the system?
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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