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:

Frustration-Aggression Hypothesis

A psychological theory proposing that aggression is often a result of frustration caused by blocked goals.

Excitation-Transfer Model

The expression of aggression is a function of learnt behaviour, some excitation from another source, and the person’s interpretation of the arousal state.

Arousal

A psychological and physiological state of being awake and reactive to stimuli.

Social Learning Theory

The view championed by Bandura that human social behaviour is not innate but learnt from appropriate models.