Explanation:
Explanation:
Dutch disease occurs when:
Country 3 fits this pattern perfectly:
Country 1 has scarce resources, so cannot have Dutch disease. Country 2 has a weak currency and high productivity growth, which contradicts the Dutch disease pattern.
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| Country | Natural Resources | Currency | Productivity Growth |
|---|---|---|---|
| 1 | Scarce | Strong | Low |
| 2 | Abundant | Weak | High |
| 3 | Abundant | Strong | Low |
Based only on this information, the country that most likely suffers from the Dutch disease is:
A
Country 1.
B
Country 2.
C
Country 3.
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