This is the question EXACTLY as my instructor asked it, I am lost... Assume that in the market for Russian Rubbles there is some elasticity of supply and demand. Construct a market for Russian Rubles in terms of the Euro stating the proper exchange rate price ratio on the price axis. Label the initial supply and demand with subscript "1"  Analyze the likely effect in the market for Russian Rubles if Russian investors increasingly prefer to invest in European financial assets.

Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter32: A Macroeconomic Theory Of The Open Economy
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This is the question EXACTLY as my instructor asked it, I am lost...

Assume that in the market for Russian Rubbles there is some elasticity of supply and demand. Construct a market for Russian Rubles in terms of the Euro stating the proper exchange rate price ratio on the price axis. Label the initial supply and demand with subscript "1"  Analyze the likely effect in the market for Russian Rubles if Russian investors increasingly prefer to invest in European financial assets.

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