According to the "Trilemma" a country can attain only two of the following three conditions: (1)A fixed exchange rate,(2)free international flows of capital,and (3)an independent monetary policy.This difficulty is also known as
A)the incompatible trinity.
B)the Trilemma.
C)the Tobin tax.
D)none of the options

Question

Quizplus · Accepted Answer

The "Trilemma" or "impossible trinity" refers to the economic theory that a country cannot simultaneously have a fixed exchange rate, free capital movement, and an independent monetary policy.

According to the "Trilemma" a Country Can Attain Only Two