Answer:
The real exchange rate would result in a growth of the relative price of Chinese TVs over the price of Russian Vodka.
This is because Chinese TVs are becoming more technologically advanced, increasing both their nominal and real value, while Russian Vodka is being produced en masse, but without technological progress, decreasing both its nominal and real value.
The nominal exchange rate would result in the ruble depreciating strongly against the Yuan.
The quick growth of money supply in Russia means inflation, and this added to the loss of value of the Vodka exports, results in the decrease of nominal value for the ruble against the Yuan, which has a moderate growth in money supply (meaning moderate inflation), and benefits from the exports of a good that is appreciating (the Chinese TVs).
Explanation:
The last one is definitely not the answer. I am also trying to figure this out but I know for a fact the last one isin't, I think it is the 3rd option! i looked up the defenitions of the others and the one that seems right is the 3rd. Goodluck!
<span>The CPI is a measure of the overall cost of the goods and services bought by a typical consumer, and the CPI is computed and reported by the Bureau of Labor Statistics. The CPI stands for Consumer Price Index. The consumer price index will measure the weighted average pricing of what a basket of goods or services is priced at. They then calculate and average these prices to see what the price will change to overtime and how consumers will react to the market change in price. </span>
