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In 1990, Germany's current account surplus exceeded $50 billion.

In 1990, Germany's current account surplus exceeded $50 billion. However, it is estimated that the reunification process will require that Germany invest several hundred billion dollars in its eastern states over the coming decade.
a. What implications does this huge investment have for Germany's current account balance in the future? Explain.
b. How should the Deutsche mark's value change to facilitate the necessary shift in Germany's economy?

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