A rise in business and consumer confidence about the course of the economy will, according to the large open economy model with floating exchange rates, lead to:

a.

increase in interest rates, increase in output, increase in net capital outflows, and depreciation of the exchange rate.

b.

increase in interest rates, increase in output, decrease in net capital outflows, and depreciation of the exchange rate.

c.

increase in interest rates, increase in output, appreciation of the exchange rate, and a decrease in net exports.

d.

increase in interest rates, increase in output, depreciation of the exchange rate, and increase in net exports.

Give proper explanation