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Business, 15.04.2020 19:32 cowgyrlup124

Assume the economy is open to capital inflows and outflows and therefore net capital inflow equals imports (IM) minus exports (X). Answer each of the following questions.

a. X = $125 million
IM = $80 million
Budget balance = -$200 million
I = $350 million Calculate private savings.

b. X = $85 million
IM = $135 million
Private savings = $250 million
Calculate I.

c. X = $60 million
IM = $95 million
Private savings = $325 million
I = $300 million
Calculate the budget balance.

d. Private savings = $325 million
I = $400 million
Budget balance = $10 million
Calculate IM - X.

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