1 - Suppose that the UAE government has a budget deficit and decides that the economy is closed. Can you use the savings-investment spending identity to explain how the budget deficit will affect investment spending in the UAE?

2 - Suppose the UAE government decides to open up its economy and balance its budget. Since the economy is open, there is also a positive capital inflow from foreign citizens. Use the savings-investment spending identity to explain how these developments affect investment spending in the UAE?