Which of the following would lead to an increase in the supply of Russian rubles?
A) An increase in the dollar price of the ruble
B) An increase in Russian GDP
C) An increase in the U.S.price level relative to the Russian price level
D) A decrease in the dollar-ruble exchange rate
E) Expectation that the price of the ruble will rise.

Question

Quizplus · Accepted Answer

An increase in Russian GDP would lead to an increase in the supply of Russian rubles because a growing economy would require more currency to support its transactions and operations.

Which of the Following Would Lead to an Increase in the Supply