Savings, Investment Spending, and the Financial System - End of Chapter
Assume a hypothetical economy that is open to capital inflows and outflows, so that net capital inflow equals imports (IM) minus exports (X). b. The economy has the following properties: X = $85 million IM = $135 million Budget balance = $100 million Private savings = $250 million Calculate investment (I) in millions of dollars. I = $ million
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