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6. Assume that saving in China has been used to finance investment into the EU. That is, the Chinese have been buying European capital assets.
6. Assume that saving in China has been used to finance investment into the EU. That is, the Chinese have been buying European capital assets. If the Chinese decided they no longer wanted to buy European assets, what would happen in the European market for loanable funds? In particular, what would happen to European interest rates, European saving and European investment
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