Statement using demand and supply curves

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In february 2014, hostilities escalated between Russia and Ukraine over Crimea. Predict the effects of these hostilities on the exchange rate between the U.S. dollar and the Russian Ruble? In March, an article in the Moscow Times reported: "the currency declined further in Monday trading, but a ruble that is losing value is a great prop for struggling local manufacturers, which now find themselves more competitive with Western imports" Explain the logic behind this statement using demand and supply curves.

Reference no: EM131004910

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