Question: True or False and Explain: 1. Impossible trilemma states that a country cannot have a fixed exchange rate, capital controls and high level of inflation

True or False and Explain:

1. Impossible trilemma states that a country cannot have a fixed exchange rate, capital controls and high level of inflation simultaneously

2. Original sin and debt intolerance are equivalent

3. Contagion only occurs when there are financial linkages between countries

4. In commodity-dependent developing countries, commodity prices act counter-cyclically

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