What will happen to its overall money supply


Assume the Switzerland is on the gold standard and it maintains a strict ratio of gold in its vaults to money (Swiss francs) in circulation. Assume that it runs a balance of payments deficit. What will happen to its overall money supply? Explain what impact will this have on the Swiss economy (e.g. prices of goods and  exports)? Will this help or hurt the balance of payments situation? 

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Macroeconomics: What will happen to its overall money supply
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