A.If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in a foreign central bank’s claims on the home country implies a decreased foreign money
B.If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in a foreign central bank’s claims on the home country implies a decreased foreign money
C.If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in a foreign central bank’s claims on the home country implies a decreased foreign money
D.There is not a clear connection between the
E.None of the
Answer: C
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