Assume the economy is open to capital inflows and outflows and therefore net capital inflow equals imports (IM) minus exports (X). Answer each of the following questions.

a. X = $125 million

IM = $80 million

Budget balance = −$200 million

I = $350 million

Calculate private savings.

b. X = $85 million

IM = $135 million

Budget balance = $100 million

Private savings = $250 million

Calculate I.

c. X = $60 million

IM = $95 million

Private savings = $325 million

I = $300 million

Calculate the budget balance.

d. Private savings = $325 million

I = $400 million

Budget balance = $10 million

Calculate IM − X.