Which of the following statements explains the relation between the real interest rate and the international financial capital flow?

The decrease in domestic real interest rate relative to the world interest rates increases the international financial capital inflow in the economy from the rest of the world.

The decrease in the financial capital inflow is primarily due to increases in borrowings from the rest of the world.

The increase in domestic real interest rate relative to the world interest rates decreases the international financial capital inflow in the economy from the rest of the world.

The increase in the domestic real interest rate relative to world interest rates increases the international financial capital inflow in the economy from the rest of the world.

There is no relationship between the real interest rate and the capital financial flow in the economy.