(a)
- Using Table 1.1, calculate the percentage decline in the nominal value of the rouble against the US dollar between 2013 and 2015. [2]
- Explain the distinction between a nominal exchange rate and a real exchange rate. [2]
(b)[4]
Explain, using a demand and supply diagram, how the fall in the price of a barrel of oil helped to reduce the value of the rouble.
(c)[6]
Analyse the likely effect of a depreciation of the rouble on the Russian economy.
(d)[6]
Discuss whether privatising some state assets would on balance benefit the Russian economy.