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Following an increase in the Canadian budget deficit, it has been observed that the trade deficit has increased, the Canadian real exchange rate has appreciated,

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Following an increase in the Canadian budget deficit, it has been observed that the trade deficit has increased, the Canadian real exchange rate has appreciated, the net capital outflow has decreased, and the interest rate has decreased. Which one of these events is contrary to what the open-economy macroeconomic model predicts concerning the effects of an increase in the budget deficit?[ Please do a detailed analysis while answering this question] Select one: O The net capital outflow has decreased. O The real exchange rate has appreciated. O The trade deficit has increased. O The interest rate has decreased

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