If Purchasing-Power Parity Between France and the U

Multiple Choice

If purchasing-power parity between France and the U.S.holds,but then U.S.prices rise,

A) the real exchange rate is above its purchasing-power parity value.An increase in the nominal exchange rate can move it back.
B) the real exchange rate is above its purchasing-power parity value.A decrease in the nominal exchange rate can move it back.
C) the real exchange rate is below its purchasing-power parity value.An increase in the nominal exchange rate can move it back.
D) the real exchange rate is below its purchasing-power parity value.A decrease in the nominal exchange rate can move it back.