If prices in the United States rise less rapidly than in Canada,which of the following would be expected according to purchasing power parity?

Question

Quizplus · Accepted Answer

According to purchasing power parity, if prices rise less rapidly in the U.S. than in Canada, the U.S. dollar should appreciate relative to the Canadian dollar, meaning the value of the Canadian dollar will decline relative to the U.S. dollar.

If Prices in the United States Rise Less Rapidly Than