Is this right?

Question 27 A foreign interest rate shock causes the foreign rate or return to exceed the domestic rate of return. Which of the following outlines subsequent effects of this in a fixed exchange rate regime? capital inflows cause interest rates to decline boosting domestic investment and economic activity O capital outflows cause a currency to depreciate improving the trade balance and economic activity O as unemployment rises workers accept lower wages improving international competitiveness in trade capital outflows cause interest rates to rise as the domestic money supply and reserves fall. The economy contracts