Assume that growing levels of Chinese debt, a trade war with the
U.S., and uncertainties surrounding the COVID-19 virus are lowering
MPK in China. What will be the effect on Chinese domestic
investment, I? For each of the following two cases, derive the
expected effects on Chinese and US interest rates, saving,
investment, and net exports:.
a) Include graph explaining as China is a small open economy
b) Include graph explaining the world consists of 2 large
economies: China and...