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Majapahit and Sriwijaya are two neighboring countries that are always competing with each other. In the race for economic growth, each government appears to pursue a different set of strategies. Majapahit is reported to have increased the government spending and lowered the tax rates for low-income households. On the other hand, Sriwijaya has instructed its central bank to lower the interest rates. According to the neoclassical theory, which country will have higher economic growth in the long run?

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