You see on the news that a recession has started in Saudi Arabia. Which of the following would happen in the market for Saudi riyals?
a. A decrease in the supply of riyals and an appreciation of the riyal.
b. An increase in the supply of riyals and a depreciation of the riyal.
c. A decrease in the supply of riyals and a depreciation of the riyal.
d. An increase in the supply of riyals and an appreciation of the riyal.
e. Cannot be determined without additional information.
A
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