The "impossible trinity" explains the relationship between
A) free movements of international capital.
B) independent monetary policies of countries.
C) fixed exchange rate systems of countries.
D) All of these are correct.

Question

Quizplus · Accepted Answer

The "impossible trinity" refers to the concept that it is impossible for a country to simultaneously have free movements of international capital, independent monetary policies, and a fixed exchange rate system. Therefore, all three choices listed in the answer are correct in explaining the relationship between the elements of the "impossible trinity."

The "Impossible Trinity" Explains the Relationship Between