Assume that in a small open economy where full employment always prevails, national saving is 400.

a. If domestic investment is given by I = 550 26 r, where r is the real interest rate, what would the equilibrium "r" be if the economy were closed? ____________

b. If the economy is open and the world interest rate is 8 percent, what will investment be? ____________

c. Using your answer from part b., what is the current account surplus/deficit?

d. What is the net capital flow?

pls answer all