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A second type of policy is aimed at improving productivity and increasing competitiveness by investing in basic research and development. The key is not to grant subsidies and protection but rather to create a healthy business environment that facilitates the discovery of profitable investment opportunities and ensures that markets remain open and competitive. In many of today's high-income countries such as Australia, Canada, Scandinavian countries, and the United States, natural resources provided the original basis of growth, after which they diversified into resource-based manufacturing and eventually into other, more knowledge-intensive industries. According to the article, which of the following statements about the Dutch Disease are correct? Check all that apply. Currency appreciation makes the nonbooming tradable sector less attractive to the workforce, which turns to the nontrade sector, like services. ) The Dutch Disease can be cured by allowing manufacturing jobs to move freely to other countries. When a country's currency appreciates, its manufacturing sector quickly gains competitiveness. The Dutch Disease can be prevented if the government encourages a high rate of saving and invests the proceeds of exhaustible resources in human or physical capital. Which of the following is a characteristic of the economic model used to explain the Dutch Disease? The economy has the nontraded goods sector, which is booming, and two lagging traded goods sectors. The economy has two traded goods sectors, one booming and the other lagging, and the nontraded goods sector. The economy has three sectors; two sectors are booming, and one sector is lagging. O The economy has two sectors, a booming one and a lagging one. 4