If the Inflation Rate in Australia Is Higher Than That

Multiple Choice

If the inflation rate in Australia is higher than that of Italy,and productivity is growing at a slower rate in Australia than it is in Italy,in the long run:

A) the euro should depreciate, relative to the dollar.
B) the euro should appreciate, relative to the dollar.
C) there should be no change in the euro price of the dollar.
D) it is uncertain what will happen to the euro price of dollars.