QUESTION FIVE (21 MARKS) cu+1 cux a) Given model of a process of money supply in an economy as M = (F + G + currency H(i -- id)) where cu is the currency deposit ratio i.e cu = x is the required reserve deposit ratio i.e x = required reserve , F denotes net foreign assets, G, net government borrowing, H, deposit net borrowing by commercial banks, i is market interest rate, and id is the central bank's discount rate. i) State and explain the economic meaning of the term cu+1 cu+x (4 marks) 2 ni) Derive the effects of the central bank's policy instruments, in particular, if the required reserve ratio is increased, on money supply