​Consider Two Countries That Trade with Each Other, Called X

Multiple Choice

​Consider two countries that trade with each other, called X and Y. According to the text, inflation in Country X will have a greater impact on inflation in Country Y under the ____ system. Now, consider two other countries that trade with each other, called A and B. Unemployment in Country A will have a greater impact on unemployment in Country B under the ____ system.

A) ​floating rate; fixed rate
B) ​floating rate; floating rate
C) ​fixed rate; fixed rate
D) ​fixed rate; floating rate