An Increase in Total Factor Productivity Has Different Effects in an Open

question 68

Multiple Choice

An increase in total factor productivity has different effects in an open economy relative to a closed economy because

• A)the real interest rate does not change in the open economy.
• B)the real interest rate does not change in the closed economy.
• C)it is a positive income effect in the closed economy and a negative one in the open economy.
• D)the change in the real interest rate involves a substitution effect only in the open economy.
• E)the real interest rate decreases in the open economy and increases in the closed economy.

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Definitions:

ECG

A test that records the electrical activity of the heart to detect heart conditions.

ECGs

Electrocardiograms, a medical test that measures the electrical activity of the heart to identify abnormalities.

Atrioventricular Valves

Heart valves located between the atria and ventricles, enabling blood flow from the atria to the ventricles while preventing backflow.

Semilunar Valves

Valves located at the exit of both the left and right ventricles of the heart, which prevent backflow of blood into the ventricles.