In the First Half of 1989 the Inflation Rate in the United

In the first half of 1989 the inflation rate in the United States exceeded that of Japan yet the dollar appreciated relative to the yen.Which of the following facts would explain the failure of the PPP theory to explain the strength of the $ during this period?

A) the Japanese produced a number of new electronic gadgets much in demand by U.S.consumers
B) the Exxon oil spill
C) the Japanese purchased an increasingly large percentage of U.S.government and corporate securities
D) U.S.citizens participated heavily in the Japanese stock market