Question

Devaluation can result from government action or an economic crisis. In August 1998, the Russian economy imploded. As a result, all of the following listed events happened except:

A) the ruble plunged in value.
B) the government defaulted on its foreign debt obligation.
C) many Russians faced wage cuts and layoffs.
D) Russia's economy did not recover from the impact.
E) savings were wiped out as banks collapsed.

Answer 1

The event that did not happen following the Russian economic crisis of 1998 was Russia's economy not recovering from the impact. Russia did recover despite the initial severe consequences following the crisis.

Step-by-step explanation:

In August 1998, the Russian economy experienced a significant crisis, leading to various economic hardships. Out of the listed events, the one that did not happen was: D) Russia's economy did not recover from the impact. Despite the severe economic troubles, Russia eventually did recover from the catastrophic downturn. Some of the consequences of the crisis were indeed the devaluation of the ruble (A) the ruble plunged in value), the government defaulting on its foreign debt (B) the government defaulted on its foreign debt obligation), many Russians facing wage cuts and layoffs (C) many Russians faced wage cuts and layoffs), and the obliteration of savings due to bank failures (E) savings were wiped out as banks collapsed).