The effect that commodity exports can have on the exchange rate is known as:

Question

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The effect of commodity exports on the exchange rate is known as Dutch disease. This term refers to the negative impact that an increase in natural resource exports may have on a country's manufacturing sector and overall economic competitiveness. As commodity exports increase, demand for the country's currency also increases, leading to appreciation and potentially harming other sectors of the economy.

The Effect That Commodity Exports Can Have on the Exchange