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Taya2010 [7]
3 years ago
7

Suppose the government of Russia runs a budget deficit. This will result​ in:

Business
1 answer:
adoni [48]3 years ago
8 0

Answer:

D. an increase in interest rates in Russia and a decrease in the value of the ruble relative to other currencies.

Explanation:

In case  the government of Russia runs a budget deficit , there will be inflationary pressure because budget deficit will be met by printing of currency . Inflationary pressure will drive interest rate high which will adversely affect the value of currency in international market. So the value of ruble will decrease relative to other currency .

Option D is correct .

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Answer:

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I hope this helps...

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