1) In an open economy, in the context of savings and investment which of the following is true?

a) I - S = (T - G) + (M - X)

b) I = S + (T - G) + (M - X)

c) if I > S and government budget is balanced then X < M

d) all of the above.

2)Planned Aggregate Expenditure for an open economy can be written as:

a) PAE = C + I + G + X

b) PAE = C + I + G + X - M

c) PAE = C + I + G + M

d) PAE = C + I + G