The Open Economy Effect and Interest Rate Effect Are Two

question 29

Multiple Choice

The open economy effect and interest rate effect are two of the reasons why

• A) higher price levels increase long-run aggregate supply.
• B) the aggregate demand curve slopes downward.
• C) capital formation does not contribute to economic growth in poor countries.
• D) growth of the labor force does not contribute to economic growth in wealthy countries.

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Definitions:

Hydrophilic

Denoting the property of attracting or associating with water molecules, possessed by polar molecules and ions; the opposite of hydrophobic.

Branching Polymer

A type of polymer where the molecule structure branches off from the main chain, resulting in a three-dimensional network.

Carbohydrate

Organic compounds made up of carbon, hydrogen, and oxygen that are a major source of energy in the diet of animals, including sugars, starches, and cellulose.

Nucleic Acids

are biopolymers essential for all known forms of life, including DNA and RNA, which carry genetic information and play roles in protein synthesis.