The booming of North Seas' gas export revenues in the 1970s that appreciated the guilder, making industrial export more costly in foreign currencies and increasing foreign competition and unemployment is known as ?
Correct answer: C. Dutch disease
- A. Trade deficit
- B. Blind river disease
- C. Dutch disease
- D. Economic turmoil
Explanation
Dutch disease occurs when a resource-export boom appreciates the domestic currency, making manufactured exports less competitive and shifting resources away from other tradable sectors. The term originated from the Netherlands' natural-gas experience.
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