If Europe Has a Real GDP Growth Rate of 5

Multiple Choice

If Europe has a real GDP growth rate of 5%, and the United States has a real GDP growth rate of 6%, while money growth in Europe is 7%, and money growth in the United States is 5%, what would the monetary exchange rate model predict for exchange rates in the long run?

A) The U.S. dollar would appreciate by 3% against the euro.
B) The U.S. dollar would depreciate by 3% against the euro.
C) The U.S. dollar and the euro would not change against each other because the growth rates are offsetting.
D) The U.S. dollar would appreciate by 1% against the euro.