Assume that the direct quote between the KES and $ is $1 : KES 109.35 and that the inflation rate in US is 5% and the inflation rate in Kenya is 10%

The percentage change in the direct quote and the new exchange rate are:

a.

4.762%, $1: KES 104.14

b.

4.545%, $1: KES 114.32

c.

4.762%, $1: KES 114.56

d.

4.545%, $1: KES 104.37