Final answer:
The equilibrium interest rate and quantity in the capital financial market are where the supplied savings equals the borrowing demand. A decrease in investment by $10 million at each interest rate would likely raise the equilibrium interest rate, as the supply of loanable funds decreases and demand remains the same.
Step-by-step explanation:
To find the equilibrium interest rate and quantity in the capital financial market, we need to know where the amount of savings equals the amount of borrowing. According to Table 4.6 (which is not provided in the question), we would look for the interest rate at which the savings supplied to the market is equal to the demand for loans. However, it's important to note that without the actual figures, we cannot give a precise answer.
When foreign investors decrease their investment by $10 million at every interest rate, the supply curve would shift to the left. This typically causes the equilibrium interest rate to rise, as the quantity of loanable funds decreases, lenders will require a higher rate to lend the remaining funds. This shift makes intuitive sense because with less supply of loanable funds, the price for borrowing those funds (the interest rate) typically goes up due to increased competition among borrowers for the smaller pool of money.