According to Purchasing-Power Parity,if Over the Course of a Year

Multiple Choice

According to purchasing-power parity,if over the course of a year the price level in the U.S.rises more than in Japan,then which of the following falls?

A) the U.S.real exchange rate,but not the U.S.nominal exchange rate
B) the U.S.nominal exchange rate,but not the U.S.real exchange rate
C) the U.S.nominal exchange rate and the U.S.real exchange rate
D) neither the real exchange rate nor the nominal exchange rate