Which One of the Following Statements Is the Most Correct

question 61

Multiple Choice

Which one of the following statements is the most correct?

• A) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in the home central bank's foreign assets implies an increased home money supply.
• B) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in the home central bank's foreign assets implies a decreased home money supply.
• C) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in the home central bank's foreign assets implies an increased home money demand.
• D) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in the home central bank's foreign assets implies an increased home money supply.
• E) If central banks are not sterilizing and the home country has a balance of payments shortage, any associated decrease in the home central bank's foreign assets implies an increased home money supply.

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Definitions:

Significance Level

A threshold in hypothesis testing used to determine if the null hypothesis should be rejected, commonly denoted as alpha (α).

Estimates

Approximations or predictions of unknown values based on available data.

Treatments

In experimental design, interventions applied to different groups in a study to observe their effects on outcomes.

Levels

Distinct values or categories that an experimental or categorical variable can take in research or statistical analysis.