The Dutch Disease had occurred in Netherlands because:
a. the Netherlands government had borrowed heavily from the World Bank to meet its Balance of Payment deficits.
b. the price of the primary commodities declined in the international market.
c. the demand for natural gas exports from Netherlands increased substantially.
d. the currency of Netherlands depreciated in the international market.
e. the price of the commodities manufactured by Netherlands declined in the international market.
c
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The two-country, multi-product model differs from the two-country, two-product model in that, in the former
A) the relative wage ratio will determine the pattern of trade ( which good is exported by which country. B) which country will export which product is determined entirely by labor productivity data. C) full specialization is likely to hold in equilibrium. D) none of the goods are potentially nontraded. E) domestic relative prices are not relevant.
Refer to Figure 4.3. All else equal, an increase in net exports accompanied by a decrease in expected future profits would cause which of the following shifts?
A) S1 to S2 and D1 to D2 B) S2 to S1 and D1 to D2 C) S1 to S2 and D2 to D1 D) S2 to S1 and D2 to D1
Unlike a perfectly competitive firm, a monopolist
A. can choose how much output to produce. B. cannot increase production without affecting the price he or she receives for his or her good. C. usually sells in a market with a downward-sloping demand curve. D. has an MR from increasing output by one unit equal to the price of his or her product.
The aggregate demand curve
a. slopes upward. b. slopes downward. c. is perfectly vertical. d. is perfectly horizontal.