The "trilemma problem" implies that countries that opt for

Question

Quizplus · Accepted Answer

The trilemma problem, also known as the impossible trinity, states that a country cannot simultaneously have fixed exchange rates, free capital flow, and an independent monetary policy. If a country opts for fixed exchange rates, it gives up control of domestic monetary policy, making it difficult to adjust interest rates to combat inflation or recession. Therefore, option A is the best choice.

The "Trilemma Problem" Implies That Countries That Opt for