The country has entered a period of economic growth, but prices are rising too rapidly. To stabilize prices, the Federal Reserve decides to - Raise the discount rate.
Economic growth is defined as a period when the goods and services produced per head of the population over a period of time increases.
So, when the prices are rising the government increases the discount rate to stabilize that price hike.
Probability hit=40%=4/10 probability no hit=1-p (hit)=1-4/10=6/10 probability= p(hit)+p(hit)+p(hit)+p(hit)+p(hit)+p (no hit)+p (no hit)+p (no hit) probability=4/10×4/10×4/10×4/10×4/10×6/10×6/10×6/10 =0.0022 ( I think but I'm not 100% sure)
