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Consider two countries that trade with each other, called X and Y. According to the text, inflation in Country X will have a smaller impact

Consider two countries that trade with each other, called X and Y. According to the text, inflation in Country X will have a smaller 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 smaller 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

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