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Capital inflows and that the inflows are equal

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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).

Reference no: EM131725165

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