This is the question EXACTLY as my instructor asked it, I am lost... Assume that in the market for Russian Rubbles there is some elasticity of supply and demand. Construct a market for Russian Rubles in terms of the Euro stating the proper exchange rate price ratio on the price axis. Label the initial supply and demand with subscript "1" Analyze the likely effect in the market for Russian Rubles if Russian investors increasingly prefer to invest in European financial assets.
This is the question EXACTLY as my instructor asked it, I am lost... Assume that in the market for Russian Rubbles there is some elasticity of supply and demand. Construct a market for Russian Rubles in terms of the Euro stating the proper exchange rate price ratio on the price axis. Label the initial supply and demand with subscript "1" Analyze the likely effect in the market for Russian Rubles if Russian investors increasingly prefer to invest in European financial assets.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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This is the question EXACTLY as my instructor asked it, I am lost...
Assume that in the market for Russian Rubbles there is some elasticity of
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