Author Question: Under a managed float system, central banks can A) allow international reserve changes. B) let ... (Read 80 times)

mspears3 · **on:** Jun 30, 2018

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.