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a) Given model of a process of money in an economy as M = (cu +1)/(cu +x)(F+G+X[i-i^d ]) where CU is the currency deposit ratio

a) Given model of a process of money in an economy as M = (cu +1)/(cu +x)(F+G+X[i-i^d ]) where CU is the currency deposit ratio i.e cu=currency/deposit, x is the required reserve ratio i.e x=(require reserve)/deposit, F denotes net foreign assets, G, net government borrowing, H, net borrowing by commercial banks, i is the market interest rate, and i^d is the central banks discount rate. a) State and explain the economic meaning of the term (cu +1)/(cu +x)

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