If the US Real GDP Growth Rate Is Greater Than That of That

Multiple Choice

If the U.S. real GDP growth rate is greater than that of Canada, then the dollar will depreciate:

A) only if the U.S. inflation rate exceeds Canada's inflation rate.
B) regardless of the relative inflation rates.
C) only if the U.S. inflation rate is less than Canada's inflation rate.
D) only if the U.S. inflation rate is less than that of Canada's other trade partners.