Discuss quantity theory of money


Assignment Problem: 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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Microeconomics: Discuss quantity theory of money
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