Q. When an increase in one form of net exports drives up a country’s exchange rate, it is called as?

[A] French Disease

[B] Austria Disease

[C] Chinese Fever

[D] Dutch Disease

Answer: D
Notes:

When an increase in one form of net exports drives up a country’s exchange rate, it is called the Dutch Disease.  

  • Such instances make other exports noncompetitive in the world market and impair the ability of domestic products to compete with imports.  
  • The term originated from the supposed effect of natural gas discoveries on the Netherlands economy. 

Source: TMH Ramesh Singh