If a country starts lowering interest rates more than the rest of the world, and as a consequence its currency depreciates, what is the likely impact on balance of payments accounts? select 1 choice.

1. A current account deficit will become larger and a capital account surplus smaller
2. A current account deficit will become smaller and a capital account surplus is larger
3. Both a current account deficit and capital account surplus become smaller
4. both a current account deficit and a capital account surplus will become larger