Over the year the consumer price index for Canada has gone from 110 to 112 while the price index for Britain has risen from 125 to 130. At the same time the value of the British Pound in terms of Canadian Dollars has gone from $1.50/ to $1.53/. a) What has been the nominal percentage change in the value of the Canadian dollar? b) What would have been the nominal change if Purchasing Power Parity had held? (2 marks) c) What has been the real change in the Canadian dollar? d) If Canada and Britain are expected to have equal inflation rates in the coming year, what would be our expectations with respect to the Canadian dollar in terms of percentage appreciation or depreciation?