e impossible trinity is a concept in international economics which states that it is

Question

impossible to have a fixed foreign exchange rate, free capital movement, and a dependent
monetary policy at the same time. This are true or false?

Answer 1

True. The impossible trinity, also known as the trilemma of international economics, states that a country can only achieve two out of the three objectives mentioned - a fixed exchange rate, free capital movement, and an independent monetary policy. Trying to have all three at the same time is not sustainable in the long run.