If Sterilization Exists, Then This Implies That

question 28

Multiple Choice

If sterilization exists, then this implies that

• A) there is no causality between domestic credit and reserve changes.
• B) domestic credit changes cause reserve flows.
• C) reserve changes cause domestic credit changes.
• D) the monetary approach cannot be useful as a theory of exchange rate determination.

---

Definitions:

Null Hypothesis

A statement or idea that posits no statistical significance or effect in a given set of observations, used as a starting point for testing.

Condensed Form

A representation of information or a work that has been shortened or summarized, focusing on essential elements.

Main Ideas

Main ideas refer to the central or most important thoughts or messages conveyed in a text or conversation.

Particular Position

A specific location or stance taken by someone or something in a defined context.