Kazakhstan trades with Russia. If costs of production fall in Russia, the demand for the Kazakhstani tenge will _____, and the tenge will _____.

Question

Quizplus · Accepted Answer

If production costs fall in Russia, Russian goods become cheaper, increasing demand for Russian goods and reducing demand for Kazakhstani goods. This leads to a decrease in demand for the Kazakhstani tenge, causing it to depreciate.

Kazakhstan Trades with Russia