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The government of Lilliput relies on substantial seigniorage to finance its spending, while the
government of Blefuscu does not rely on seigniorage at all, Otherwise, the two nations are
similar. a. Lilliput has a rate of money growth. b. According to the , the rate of inflation will be
in Lilliput. c. According to the , the interest rate will be in Lilliput. d. Residents of Lilliput hold
real moncy balances and experience

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