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

question 78

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.

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Definitions:

General Mood Competency

The ability to effectively manage and influence one's emotional state and outlook.

Flexibility

The willingness and ability to adapt to new situations or changes in one's environment.

Independence

The state or quality of being self-sufficient and not dependent on external support or control.

Stress Tolerance

The ability to cope with stress in a healthy way, allowing an individual to face challenging situations without losing efficacy.