You Have Just Read in the Newspaper That a Hurricane

question 57

Multiple Choice

You have just read in the newspaper that a hurricane has destroyed Guatemala's coffee crop for this year.Guatemala is a small open economy.Based on this information alone,you would expect that

• A)desired investment would fall in Guatemala.
• B)desired investment would increase in Guatemala.
• C)net foreign lending by Guatemala would increase.
• D)net foreign lending by Guatemala would decrease.

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Definitions:

Fatty Acids

Organic compounds that are the building blocks of fats in the human body and are used for energy storage and cell structure.

Acetyl-CoA

An important metabolic intermediate that links glycolysis and the citric acid cycle, involved in energy production and synthesis of fatty acids.

Aerobic Respiration

A metabolic process involving oxygen in the breakdown of glucose or other nutrients to produce energy (ATP), carbon dioxide, and water, taking place in the mitochondria of cells.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water, producing oxygen as a byproduct.