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This question is about savings, investment and the open economy 25a) What is the savings and investment equation for an open economy? 25b) If savings

This question is about savings, investment and the open economy

25a)

What is the savings and investment equation for an open economy?

25b)

If savings is less than investment, then what is true of net foreign investment? Explain, using the savings and investment equation.

25c)

Use the following information to answer Parts C and D.

Assuming S = $75 billon & I = $115 billion in the Australian economy.

What is the current account balance (CAB)?

25d)

How is investment funded in Part C?

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