If the USprice Level Is Increasing by 3 Percent Annually and the and the Swiss

Multiple Choice

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

A) decrease by 5 percent
B) decrease by 2 percent
C) increase by 5 percent
D) increase by 2 percent