Suppose China exports television sets and uses the yuan as its currency, whereas Russia exports vodka and

Question:

Suppose China exports television sets and uses the yuan as its currency, whereas Russia exports vodka and uses the ruble. China has a stable money supply and slow, steady technological progress in producing television sets, whereas Russia has very rapid growth in the money sup-ply and no technological progress in vodka production. Based on this information, what would you predict for the real (measured as bottles of vodka per television set) and the nominal (measured as rubles per yuan)? Explain your reasoning.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...