Suppose the United States employs a gold standard and decides to use expansionary monetary policy. Initially, the use of expansionary monetary policy brings domestic interest rates down relative to foreign interest rates. In response to higher foreign interest rates, there will be an incentive to exchange dollars for gold at the Federal Reserve, trade gold for units of foreign currency, and then buy foreign assets, which yield higher interest rates.

These actions (private sale of dollars for gold in the US, sale of gold for foreign currency, etc) will have what effect on:

i. The US money supply

ii. US interest rates