The national accounting of country M is reported as follows:

Y (GDP) = 100 (in billions)

C (consumption) = 80

I (domestic investment) = 20

G (government purchase) = 25

T (net taxes) = 10

FA (private capital flow) = +15 (credit)

a) How large is the private saving, public saving, and national saving, respectively?

b) How large is the net foreign investment? Is country M a lender or borrower?

c) If country M adopts a fixed exchange rate system, what kind of exchange pressure does its monetary authority face?

d) What’s the action needed by the monetary authority to keep the exchange rate at par?