If costs of raw materials fall in Russia, the demand for the ruble will _____, and the ruble will _____.

Question

Quizplus · Accepted Answer

If the costs of raw materials fall in Russia, it will become cheaper for Russian producers to produce goods, making them more competitive in the global market. This will result in an increase in demand for rubles as foreign buyers will need more rubles to purchase goods from Russia. Additionally, the decrease in raw material costs will increase Russia's export revenue, which may result in an increase in foreign investment in the Russian economy, further increasing demand for the ruble. As a result, the ruble is likely to appreciate.

If Costs of Raw Materials Fall in Russia, the Demand