3. Folbw this With a discussion Of the impact Of of the following eas: a. The Chinese trade surplus with the US results in the Chinese purchasing US financial assets in the form Of US government bonds. Explain how this affects the IJS funds market and growth. Please demonstrate your understand of the simple economic growth model and the loanable funds model from the of view of the US. Note that Chinese lending to the US allows the US to have a negative NCO meaning more Of Chinese savings are flowing in compared to US savings going abroad. If NCO NX is negative, then if you this expression to the other side of the loanable funds equation, you have a NCO) NCO which are the foreign savings addition to your national savings: + + (T G) + (T G) NCO