4. Assume that American and Japanese capital markets are identical with respect to investment opportunities and in all other ways except that American households tend to have a stronger preference for current consumption. As you did for question 3, use the supply and demand apparatus of the classical model to compare - on the same diagram - the equilibrium in the two markets. As before, explain what factor in the model is affected by the difference in preferences, and why this leads to the differences and similarities in supply and demand curves for the two countries that you have indicated. Finally, based on your analysis, which country will have the higher interest rate? (For purposes of this question, assume there is no international flow of capital between the US and Japan.) 4. Assume that American and Japanese capital markets are identical with respect to investment opportunities and in all other ways except that American households tend to have a stronger preference for current consumption. As you did for question 3, use the supply and demand apparatus of the classical model to compare - on the same diagram - the equilibrium in the two markets. As before, explain what factor in the model is affected by the difference in preferences, and why this leads to the differences and similarities in supply and demand curves for the two countries that you have indicated. Finally, based on your analysis, which country will have the higher interest rate? (For purposes of this question, assume there is no international flow of capital between the US and Japan.)