1.4. Assume the economy is open to capital inflows and that capital inflows equals imports (IM) minus...

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1.4. Assume the economy is open to capital inflows and that capital inflows 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 Budget balance = $100 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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Economics

ISBN: 978-0716771586

2nd Edition

Authors: Paul Krugman ,Robin Wells

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Question Posted: Oct 02, 2024 06:00 AM

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1.4. Assume the economy is open to capital inflows and that capital inflows equals imports (IM) minus...

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Economics

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