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Author Question: If interest rates rise, what will happen to the nation's exchange rate? What will be an ideal ... (Read 98 times)

ereecah

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on: Jun 30, 2018
If interest rates rise, what will happen to the nation's exchange rate?
 
  What will be an ideal response?

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.


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javimendoza7

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Reply #1 on: Jun 30, 2018
Answer to Question 1

It will appreciate.

Answer to Question 2

C


ereecah

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

mcarey591

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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