An increase in U.S. exports to Russia _______ the demand for U.S. dollars and _______ the supply of Russian rubles.

Question

Quizplus · Accepted Answer

An increase in U.S. exports to Russia would increase the demand for U.S. dollars because Russian importers need to exchange rubles for dollars to pay for the U.S. goods. Simultaneously, it would increase the supply of Russian rubles in the foreign exchange market as these rubles are exchanged for dollars.

An Increase in U