Question: Refer to the section from the text below: The Russian invasion of Ukraine in early 2014 was a classic case of an external shock. Foreign

 Refer to the section from the text below: The Russian invasion

Refer to the section from the text below: The Russian invasion of Ukraine in early 2014 was a classic case of an external shock. Foreign exchange markets reacted quickly, sending the value of the hryvnia (Ukraine's currency) into a prolonged depreciation. The dollar value of the hryvnia plunged from 12.3 cents to 7.6 cents in a couple of months. That 40 percent depreciation in the value of the hryvnia substantially increased the cost of badly needed food, oil, and weapons imports. How many Ukrainian hryvnia could you buy with one U.S dollar: Instructions: Enter your responses rounded to two decimal places. (a) Before the Russian invasion? 8 hryvnia (b) After the Russian invasion? 13 hryvnia

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