In the situation described in the above question, suppose that the Central Bank of Vietnam decides to keep the nominal dong-dollar exchange rate constant indefinitely. Given whatDEP Inc. has determined about the trend in the real exchange rates and assuming that the rate of inflation in the rest of the world remains unchanged, what should one expect to happen to the rate of inflation in Vietnam over the next several years compared to the past?

a.The rate of inflation will rise.

b.The rate of inflation will decline.

c.The rate of inflation will remain unchanged.

d.The rate of inflation may rise or decline.