4. According to th 4. According to the savings-investment spending identity in an economy open to capital flows from and to abroad, the following must hold: I = Private savings + Budget bal- ance + (IM-X). We use this to solve for the missing variable in each problem. a. $350 million = Private savings - $200 million + ($80 million - $125 million) So private savings = $595 million b. I = $250 million + $100 million+ ($135 million - $85 million) So I = $400 million c. $300 million = $325 million + Budget balance + ($95 million - $60 million) So the budget balance = -$60 million d. $400 million = $325 million + $10 million + (IM -X) So net capital inflow (IM -X) = $65 million