If the USInflation Rate Is 3 Percent Annually and the Swiss Inflation

Multiple Choice

If the U.S.inflation rate is 3 percent annually and the Swiss inflation rate is 5 percent annually,by what percent would the dollar price of francs need to change according to purchasing power parity?

A) Depreciate by 5 percent
B) Appreciate by 3 percent
C) Appreciate by 5 percent
D) Depreciate by 2 percent
E) Appreciate by 2 percent.