QUESTION 17 Consider a country that has a gold standard exchange rate system. Which of the following occurs if this country expands its money supply to eliminate a surplus in its balance of payments? O Aggregate demand, the price level, and real GDP all decrease and eventually, net exports will rise in response to the lower price level. O The price level increases and real GDP increases as producers respond to the higher price level but aggregate demand will fall. O Aggregate demand, the price level, and real GDP all increase, and eventually, net exports will fall in response to the higher price level. O The price level and real GDP increase, but aggregate demand will fall. QUESTION 18 1 po A deficit in the current account implies O there is an excess demand in the foreign currency market. O a deficit in the capital account. O a surplus in the capital account O nothing about the capital account