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QUESTION

Which effects of the Dutch disease also appear in the nation that possesses the reserve currency?

Which effects of the Dutch disease also appear in the nation that possesses the reserve currency?

General Effects of Dutch Disease: Makes imports cheaper and exports moreexpensive (less competitive)• Results in lower productivity and development• Other Effects:• the state as client – economic success determinedby links to government rather than competitiveness• The state is less accountable to citizens

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