Q7

1 pts Question 7 If the 2005 inflation rate in Canada is 4 percent, and the inflation rate in Mexico is 2 percent, then the theory of relative purchasing power parity predicts that, during 2005, the value of the Canadian dollar in terms of Mexican pesos will rise by 6 percent. fall by 6 percent. O rise by 2 percent. O fall by 2 percent. stay unchanged