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Discuss the following statements: a. 'The quantity theory of money implies that money is neutral in the long-run.' b. 'If country A has a higher
Discuss the following statements:
a. 'The quantity theory of money implies that money is neutral in the long-run.'
b. 'If country A has a higher investment rate than country B, capital will flow to country A and the country will run a current account deficit.'
(hint: please explain questions with reasonable words, equations and diagrams if needed.)
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