Question
Please answer the question by computer, so i can see it clearly, thank you!!! With Russia invading Ukraine on February 24, 2022, the National Bank
Please answer the question by computer, so i can see it clearly, thank you!!!
With Russia invading Ukraine on February 24, 2022, the National Bank of Ukraine (NBU) took strong action by instituting capital controls (e.g., prohibiting the purchase or selling of foreign currency) and transitioning from a flexible to a fixed exchange rate regime.
Questions:
Explain what the NBU must do to maintain the fixed exchange rate if capital controls are not binding and Ukrainian residents are expected to move large capital out. To support your response, draw an AA-DD diagram.
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