The Open Economy Trilemma Is That

Multiple Choice

The open economy trilemma is that:

A) fiscal policies, monetary policies, and direct controls cannot manage all macroeconomic problems.
B) a fixed exchange rate, unrestricted capital flows, and monetary independence cannot all be achieved at the same time.
C) unrestricted capital flows cannot be achieved when fiscal and monetary policies are being implemented.
D) monetary shocks, real shocks, and supply shocks all disturb long run macroeconomic equilibrium.