Russian Rubles Because of sanctions over their involvement in Ukraine in 2014, the Bank of Russia has raised its benchmark interest rate from 8% to 9.5%. What affect does this have on the exchange rate for the Russian Rubble versus the Euro?
This would make investing in Russia more attractive. To the extent that they can, Europeans would seek to invest more in Russia. Of course, the sanctions attempt to limit these additional investments but they may not be perfectly enforced. This means converting more Euros for Rubbles and driving up the price of Rubbles. Likewise, this makes borrowing in Russia more expensive.
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Whenever somebody deposits a check from bank A into a checkable deposit at bank B, bank A's reserves ________ and bank B's reserves ________
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase E) do not change; do not change
Workers expect inflation to fall from 4% to 1% next year. As a result, this should
A) move the economy up along a stationary short-run aggregate supply curve. B) shift the short-run aggregate supply curve to the right. C) shift the short-run aggregate supply curve to the left. D) move the economy down along a stationary short-run aggregate supply curve.
An increase in the supply of oranges in a town drives down its price by 5 percent. Which of the following changes will be observed in the market?
a. The demand for oranges will decrease. b. The demand for oranges will increase. c. The quantity of oranges demanded will increase. d. The quantity of oranges demanded will decrease.
Which of the following terms describes the situation in which all resources are able to move to their highest-valued uses via voluntary exchange?
A. economic efficiency B. a market failure C. government intervention D. an externality