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The Dutch Disease Refers to a Situation in Which I

Question 22

Multiple Choice

The Dutch Disease refers to a situation in which I: manufacturing firms contract when resource-sector firms expand,when
II: the international value of the domestic currency is rising.


A) I is true; II is not.
B) II is true; I is not.
C) Both I and II are true.
D) Neither I nor II is true.

Correct Answer:

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