The "Impossible Trinity" Refers to the Idea That It Is

Multiple Choice

The "impossible trinity" refers to the idea that it is impossible for a country to simultaneously have:

A) low inflation, low unemployment, and a rapid rate of GDP growth.
B) free capital flows, a fixed exchange rate, and an independent monetary policy.
C) high interest rates, a budget deficit, and a trade deficit.
D) an expansionary fiscal policy, a contractionary monetary policy, and a flexible exchange rate.