Economics · International Macroeconomics
The 'Impossible Trinity' (Trilemma) in international macroeconomics states that a country cannot simultaneously maintain:
- 1Fixed exchange rate, free capital movement, and independent monetary policy✓
- 2Floating exchange rate, capital controls, and monetary autonomy
- 3Free trade, fixed exchange rate, and independent fiscal policy
- 4Fixed exchange rate, trade protection, and fiscal discipline
Correct answer
Fixed exchange rate, free capital movement, and independent monetary policy
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