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Despite the government's current commitment to the peg, market participants begin to expect that in the long run the kingdom will leave the peg and
Despite the government's current commitment to the peg, market participants begin to expect that in the long run the kingdom will leave the peg and depreciate relative to the dollar (so E e riyal/$ rises). All else equal, in the short run Saudi output should (a) Rise (b) Stay unchanged (c) Fall
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