Assume that a nation's capital and financial account is in balance. If the nation's central bank implements contractionary monetary policy, which of the
following will occur solely as a result of the change in the nation's interest rates?
The balance of payments will be greater than zero.
There will be an increase in financial capital outflows.
The capital and financial account will move into surplus.
International investors will buy less of the nation's financial assets.
Both the current account and the capital and financial account will move into deficit.