Why Do Very Small Differences in Annual Growth Rates Amount

question 202

Multiple Choice

Why do very small differences in annual growth rates amount to big differences in the degree of long-term economic growth?

• A) Because the faster-growing countries gain a political advantage over poorer countries, and use that advantage for their economic gain.
• B) Because the annual growth rate is compounded over time.
• C) Because the slower-growing countries save too much.
• D) Because the slower-growing countries don't export enough.

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Definitions:

Cellular Tolerance

A condition in which cells reduce their responsiveness to a substance after repeated exposure.

Physostigmine

A reversible cholinesterase inhibitor used to treat glaucoma and to counteract the effects of neuromuscular blocking in anesthesia.

Acetylcholine

Acetylcholine is a neurotransmitter involved in many functions including muscle stimulation, memory, and alertness, playing a significant role in the autonomic nervous system.

Slowing

The process of reducing speed or rate, often used in contexts such as cognitive slowing with aging.