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Discuss the following statements: 3. 'Developing countries can never catch up with developed countries as their initial level of capital is too low.' (20 marks)

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Discuss the following statements: 3. 'Developing countries can never catch up with developed countries as their initial level of capital is too low.' (20 marks) b. 'An increase in government expenditure crowds out the economy's private investment as it will raise the real interest rate in the long-run.\" (20 marks)

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