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Question: To stabilize their currency, the response of the Central Bank of the Russian Federation was two-pronged: raising interest rates and imposing capital controls which

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Question: To stabilize their currency, the response of the Central Bank of the Russian Federation was two-pronged: raising interest rates and imposing capital controls which reduced/eliminated capital flight. Show how these two policies would be expected to cause an appreciation of the ruble. SLF ro DLF DNCO NCO SFX Eo DFX

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