Under a managed float system, central banks can A) allow ...

[mspears3]

Under a managed float system, central banks can
 
  A) allow international reserve changes.
  B) let exchange rates adjust to market pressure.
  C) experience reserve changes and exchange rate changes.
  D) All of the above.

Question 2

Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then
 
  A) Chile will produce more computers after trade begins with Brazil.
  B) Brazil will produce more timber after trade begins with Chile.
  C) Chile will produce more timber after trade begins with Brazil.
  D) Brazil will completely specialize in computers once trade begins with Chile.

[mcabuhat]

Answer to Question 1

D

Answer to Question 2

C

[mspears3]

Thanks for the timely response, appreciate it

[mammy1697]

YES! Correct, THANKS for helping me on my review