If Saudi Arabia expects the price of oil to rise by a larger percentage than the interest rate,Saudi Arabia will ________.If Saudi Arabia expects the price of oil to rise by a smaller percentage than the interest rate,Saudi Arabia will ________.
A) hold oil off the market; want to sell oil today
B) want to sell oil today; hold oil off the market
C) decrease its demand for oil; increase its demand for oil
D) increase its demand for oil; decrease its demand for oil
E) None of the above answers is correct because the interest rate has nothing to do with Saudi Arabia's decisions in the oil market.
Correct Answer:
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