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my subject is ( impact of financial development on economic growth) my variable 1 is economic growth as GDP will represent it
my subject is ( impact of financial development on economic growth)
my variable 1 is economic growth as GDP will represent it.
for financial development, I have to put ratio of m3,
-Claims on private sector (annual growth as % of broad money)
-Claims on central government (annual growth as % of broad money)
-Claims on other sectors of the domestic economy (annual growth as % of broad money)
Do I sum those up for M3 ratio for variable 2?
Expert Solution
ANSWER:
yes ,
I can sum up M3 ratio for variable 2 as it include all the major money supply which central government and private sector has and it also include other sectors of the domestic economy as it includes the currency which an agreed maturity of upto two years , deposits redeemable at notice of upto three months and repurchase agreement , money market fund shares and debt securities upto two years . so M3 is also calledas broad money
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