Dutch disease may be evident in Canada because

Question

Quizplus · Accepted Answer

The Canadian dollar appreciates with higher oil prices, which can lead to decreased competitiveness in other sectors of the economy, such as manufacturing. This is a common symptom of Dutch disease, where a resource-based economy experiences negative effects on other sectors due to a focus on a single commodity. Option D is also true, but it is a result of Dutch disease, rather than a cause. Options A and B are not directly linked to Dutch disease.

Dutch Disease May Be Evident in Canada Because