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The islander who called them both liars

On an island where each resident is either a truth-teller (always honest) or a liar (always dishonest), you meet two people, Mo and Ned. Mo speaks up:

Mo: "The two of us are both liars."

Is Mo a truth-teller or a liar? What about Ned?

Your answer

This one is open-ended. Work it through, then check your reasoning against the full solution.

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