Assume that the inflation rate in Malaysia is 7%, while the inflation rate in the U.S. is 3%. According to PPP, the Malaysian ringgit: should appreciate by 3.74% should depreciate by 3.74% should remain unchanged. Question 19 (4 points) The inflation rate in the U.S. is 2%, while the inflation rate in Canada is 4%. The current exchange rate for the Canadian dollar is $0.740. After supply and demand for the Canadian dollar has adjusted in the manner suggested by purchasing power parity (PPP), the new exchange rate for the Canadian dollar will be: $0.755 $0.770 1.92% $0.726