Answer the questions below based upon the following Balance of Payments table for Tundraland (figures are in millions of cugats):
| Current account | |
| Merchandise | |
| Exports | +375 |
| Imports | -210 |
| Balance of trade | |
| Services | |
| Exports | +20 |
| Imports | -10 |
| Balance on services | |
| Balance of goods and services | |
| Net investment income | +7 |
| Net transfers | -15 |
| Investment Trans. Balance | |
| Balance on current account | |
| Financial and Capital Account | |
| Capital inflows | +125 |
| Capital outflows | -285 |
| Balance on financial and capital account | |
| Current and financial capital balance | |
| Statistical discrepancy | -7 |
| Totals | 0 |
(b) What is the balance on the financial and capital account? Did more cugats flow in or out of that account?
(c) Suppose Tundraland had purchased cugats.How would you know? Would it be trying to lower or raise the value of its currency? Show graphically.
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