How a decrease in investment will affect equilibrium world, Macroeconomics

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How a decrease in investment will affect equilibrium world

Problem

Investment in the United States declined sharply as a result of the subprime financial crisis. Assuming the United States is a large open economy, explain how a decrease in investment will affect the equilibrium world interest rate and the U.S. trade surplus.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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