If Inflation in the United States Rises Relative to the Inflation

Multiple Choice

If inflation in the United States rises relative to the inflation rate in Mexico,the dollar will __________ in terms of the peso and the peso will __________ in terms of the dollar.

A) remain unaffected; appreciate
B) remain unaffected; depreciate
C) depreciate; remain unaffected
D) depreciate; appreciate
E) remain unaffected; remain unaffected