Question
Which one of the following statements is correct a) If central banks are not sterilising and the home country has a balance of payments shortage
Which one of the following statements is correct
a) If central banks are not sterilising and the home country has a balance of payments shortage , any associated decrease in the home central bank's foreign asset implies an increased home money supply
b) If central banks are not sterilising and the home country has a balance of payments surplus , any associated increase in the home central bank's foreign asset implies an increased home money demand
c) If central banks are not sterilising and the home country has a balance of payments surplus , any associated decrease in the home central bank's foreign asset implies an increased home money supply
d) If central banks are not sterilising and the home country has a balance of payments surplus , any associated increase in the home central bank's foreign asset implies an increased home money supply
e) If central banks are not sterilising and the home country has a balance of payments surplus , any associated increase in the home central bank's foreign asset implies an decreased home money supply
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