QUESTION 10 Suppose that the US inflation is 3% per year and the Japanese annual inflation is 2%. If the purchasing power parity holds, then A. the Japanese yen would appreciate 1% a year against the US dollar. O B. the Japanese yen would depreciate 1% a year against the US dollar. O C. the Japanese yen would appreciate 5% a year against the US dollar. O D. the Japanese yen would depreciate 5% a year against the US dollar