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Assume that an economy is open to capital inflows and that

Assume that an economy is open to capital inflows and that the inflows are equal to imports minus exports (IM - X). Answer the following questions.

a. Budget balance = -$20; X = $60; IM = $90; Private saving = $150. Calculate investment spending.

b. Private saving = $200; Investment = $220; Budget balance = -$30. Calculate (IM - X).

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Business Management: Assume that an economy is open to capital inflows and that

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