1.2. Given the following information about the open economy of Regalia, what is the level of investment spending and private savings, and what are the budget balance and capital inflow?

What is the relationship among the four? There are no government transfers. (Hint: capital inflow = the value of imports

(IM) minus the value of exports (X).)

GDP = $1,000 million G = $100 million C = $850 million X = $100 million T = $50 million IM = $125 million