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.
Question 2
Signaling is important because:
a. it increases social benefits associated with public goods.
b. it decreases external costs associated with externalities.
c. it reduces information costs associated with asymmetric information.
d. all of the above
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