Assume That an Economy Is Open to Capital Inflows and That

question 243

Essay

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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Definitions:

Single Ratio

Single ratio refers to the calculation of a solitary financial metric that helps in assessing a specific aspect of a company's performance or financial health.

Liquidity Ratios

Financial metrics used to evaluate a company's ability to meet its short-term debt obligations by measuring how easily it can convert assets to cash.

Dividend Payments

Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Comparative Data

Information that is compared across different time periods, companies, or other variables to analyze performance or condition.