Which of the following is impossible for a country to choose simultaneously?

1. Fixed exchange rate, free capital flows, and an independent monetary policy
2. Flexible exchange rate, free capital flows, and an independent monetary policy
3. Fixed exchange rate, capital controls, and an independent monetary policy
4. Fixed exchange rate, free capital flows, and a monetary policy subject to keeping the exchange rate unchanged

Answer rating: 100% (QA)

Correct option is 2 As per the theorem of Impossible ... View the full answer