Which of the following statements best describes the relationship between a country's balance of trade and its government budget?

ppreciate against foreign currencies, leading to an increase in imports and balance of trade surplus.

A balanced budget leads to stable domestic interest rates and increased exports, causing a balance of trade surplus.

The government budget does not affect exports or imports and therefore does not affect the balance of trade.

A budget deficit tends to increase domestic interest rates, leading to an increase in imports and a balance of trade deficit.