If the U.S. real exchange rate decreases, U.S. imports will ________ and U.S. exports will ________

Some nations benefit absolutely from abandoning their monetary policy and control of their currency because:

A) their monetary policy permitted high inflation under pressure from political interests that would not be present under a common currency arrangement. B) they did not have sufficient currency in their own nation to support a higher GDP. C) they had a strong currency, which hurt their exports. D) the central bank would keep the money supply under tight control, which is not good for economic expansion and jobs.

What is a surplus? What is a shortage?

What will be an ideal response?