If the Canadian dollar and US dollar are in equilibrium and the Canadian inflation rate is 4% and the US inflation rate is 2%, what is the estimated change in the spot exchange rate?

	A.	We expect the Canadian dollar to appreciate about 1% relative to the US dollar
	B.	We expect the Canadian dollar to appreciate about 1.96% relative to the US dollar
	C.	We expect the US dollar to appreciate by about 1% relative to the Canadian dollar
	D.	We expect the US dollar to appreciate by about 1.96% relative to the Canadian dollar