Question: a. What is the impossible trinity? What does it tell you about monetary policy in open economies? (10 marks) b. Suppose the central bank wishes

a. What is the impossible trinity? What does it tell you about monetary policy in open economies? (10 marks)

b. Suppose the central bank wishes to peg the exchange rate. Name and describe three (3) types of exchange rate classification. Describe how authorities go about fixing the exchange rate through intervention in FX markets (5 marks)

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