The following questions focus on the exchange rate between the Russian ruble and the Danish krone. Assume the exchange rate is flexible. The exchange rate is defined as the number of rubles you must pay for one krone. Suppose strong economic growth in Russia causes Russian incomes to increase, while incomes in Denmark remain the same. Shift the appropriate curve or curves on the following graph to illustrate how this affects the market for Danish kroner if all other things remain equal. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. O Supply of Kroner Demand for Kroner Supply of Kroner RUBLES PRICE OF KRONER Demand for Kroner QUANTITY OF KRONERThe increase in Russian incomes causes the Danish krone to relative to the Russian ruble and causes the Russian ruble to relative to the Danish krone. Suppose the price level in Russia rises by 5%, while the price level in Denmark remains the same. That is, the inflation rate in Russia is higher than in Denmark. Drag the appropriate curve or curves on the following graph to illustrate how this affects the market for Danish kroner. O Supply of Kroner Demand for Kroner Supply of Kroner RUBLES PRICE OF KRONER Demand for Kroner QUANTITY OF KRONER Suppose the real interest rates in Russia and Denmark are initially the same. Then the real interest rate in Denmark rises, while the real interest rate in Russia remains the same. This will cause the supply of kroner to and the demand for kroner to , which causes the Russian ruble to relative to the Danish krone