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Assume that there are only three countries in the world: Amazonia, Babylonia and Carthaginia. Amazonia has a current account deficit of 3 0 and Babylonia

Assume that there are only three countries in the world: Amazonia, Babylonia and Carthaginia. Amazonia has a current account deficit of

30

and Babylonia has a financial account surplus of

20 .

.

Calculate Amazonia

s financial account and Babylonia

s current account.

.

Calculate Carthaginia

s financial account and current account.

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