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Consider the following information about the international economy of Regalia:
GDP=$1,000million C=$850million T=$50million =$100million =$100million =$125million
a. Determine the level of investment spending () and private savings ()
b. Determine the budget balance and net capital inflow ()
c. What is the relationship among investment, private saving, the budget balance, and net capital
inflow?
=+()+(+)
=()+()
=+()+()
=+(+)+()

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  • 1. Consider the following information about the international economy of Regalia: GDP=$1,000million C=$850million T=$50million =$100million =$100million =$125million a. Determine the level of investment spending () and private savings () b. Determine the budget balance and net capital inflow () c. What is the relationship among investment, private saving, the budget balance, and net capital inflow? =+()+(+) =()+() =+()+() =+(+)+()