The "Unholy Trinity" framework deals with three government policy goals:
A) floating exchange rate, domestic autonomy of monetary policy, and capital mobility.
B) fixed exchange rate, domestic autonomy of monetary policy, and labor mobility.
C) fixed exchange rate, domestic autonomy of monetary policy, and capital mobility.
D) fixed exchange rate, domestic autonomy of fiscal policy, and capital mobility.
E) floating exchange rate, domestic autonomy of fiscal policy, and labor mobility.

Question

Quizplus · Accepted Answer

The "Unholy Trinity" framework, also known as the impossible trinity or the trilemma, states that a country cannot simultaneously have a fixed exchange rate, domestic autonomy of monetary policy, and capital mobility. The only option that aligns with this framework is choice C, which includes a fixed exchange rate, domestic autonomy of monetary policy, and capital mobility.

The "Unholy Trinity" Framework Deals with Three Government Policy Goals