Under full employment conditions a decrease in the desired level of domestic consumption at each level of income will
1. shift SI to the left, raise the real exchange rate and reduce the current account surplus.
2. shift SI to the right, lower the real exchange rate and increase the current account surplus.
3. shift CB to the right, raise the real exchange rate and increase the current account surplus.
4. shift CB to the left, lower the real exchange rate and reduce the current account surplus.
Choose the correct option.