(Answered) Assume that an economy is open to capital inflows and that

Management Studies

Assume that an economy is open to capital inflows and that the inflows are equal to imports minus exports (IM - X). Answer the following questions.

a. Budget balance = -$20; X = $60; IM = $90; Private saving = $150. Calculate investment spending.

b. Private saving = $200; Investment = $220; Budget balance = -$30. Calculate (IM - X).

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