Assume purchasing power parity holds now and in a year. Identical goods (with no transportation costs) cost $200 (USD) in the United States and 1600 RMB in China. In the next year, the Chinese economy experiences a 7% inflation rate and the U.S. economy experiences a 2% inflation rate. Which of the following is true about the RMB:USD exchange rate: O The original exchange rate was 8:1 and did not change a year later The original exchange rate was 10:1 and moved to 9:1 O The original exchange rate was 8:1 and moved to 7.6:1 O The original exchange rate was 8:1 and moved to 8.4:1