Assume that Russia and the US are trading partners. a.Draw a model showing the foreign exchange rate for the Russian ruble

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Ap Macro:International Trade and Foreign Exchange
Assume that Russia and the US are trading
partners.
a.Draw a model showing the foreign
exchange rate for the Russian ruble
compared with the US dollar.
b. Draw another model showing the foreign
exchange rate for the US dollar (compared
to the Russian ruble).
c. Show what happens on both models if the
price level in the US increases relative to the
price level in Russia.
Transcribed Image Text:Assume that Russia and the US are trading partners. a.Draw a model showing the foreign exchange rate for the Russian ruble compared with the US dollar. b. Draw another model showing the foreign exchange rate for the US dollar (compared to the Russian ruble). c. Show what happens on both models if the price level in the US increases relative to the price level in Russia.
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