Question: G D P = $ 1 , 0 0 0 million G = $ 1 0 0 million C , = $ 8 5 0

GDP=$1,000 million G=$100 million
C,=$850 million x=$100 million
T,=$50 million IM=$125 million
a. Determine the level of investment spending (I) and private savings (SP).
I=
million
SP=$
million
million
b. Determine the budget balance and net capital inflow (NCI).
Budget balance =$
million
NCI=$
million
c. What is the relationship among investment, private saving, the budget balance, and net capital inflow?
I=SP+(T+G)+(IM-x)
 GDP=$1,000 million G=$100 million C,=$850 million x=$100 million T,=$50 million IM=$125

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