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Let the inflation rate in Belize be 3.3%. At the same time, the inflation rate in the U.S. is 2.9%. According to PPP, the Belize

  1. Let the inflation rate in Belize be 3.3%. At the same time, the inflation rate in the U.S. is 2.9%. According to PPP, the Belize dollar (BBD) should ___________ by _________%.

a.

depreciate; 0.387%

b.

appreciate; 1.387%

c.

depreciate; 1.387%

d.

appreciate; 0.387%

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