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1. Policy Trilemma a. Draw the graph that illustrates the policy trilemma facing a country. b. If the country adopts a fixed exchange rate policy,

1. Policy Trilemma

a. Draw the graph that illustrates the policy trilemma facing a country.

b. If the country adopts a fixed exchange rate policy, over what aspects of policy does it have control, and what is it unable to control?

c. Why might it choose such a policy?

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