Under Conditions of Purchasing Power Parity (PPP), a Country with a Relatively

Multiple Choice

Under conditions of purchasing power parity (PPP) , a country with a relatively _______ expected inflation rate will have its currency _______ relative to a country with a relatively _______ inflation rate.

A) higher, depreciate, lower
B) lower, depreciate, higher
C) higher, appreciate, lower
D) lower, appreciate, higher.