If Labor Is Immobile Between Two Countries,changes in Relative Demand

question 15

Multiple Choice

If labor is immobile between two countries,changes in relative demand for goods and services may pose major economic problems

• A) whether exchange rates are flexible or fixed.
• B) but the problems will not be as significant as they would be if labor were mobile.
• C) when exchange rates are flexible,but not when they are fixed.
• D) when exchange rates are fixed,but not when they are flexible.

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