Suppose That Labor Is Mobile Between Countries a and B

Multiple Choice

Suppose that labor is mobile between countries A and B.If the relative demand for goods rises in country A,then labor can flow from ______________.It may be possible in this situation for countries A and B to __________________ which would help to___________________.

A) country A to country B; fix the exchange rate between the two countries (or have a common currency) ; eliminate the risks associated with having a flexible exchange rate.
B) country B to country A; impose trade restrictions upon one another; increase employment in country A
C) country B to country A; fix the exchange rate between the two countries (or have a common currency) ; eliminate the risks associated with having a flexible exchange rate
D) country A to country B; adopt flexible exchange rates; reduce the risk of exchange rate fluctuations