Taiwan has a real GDP growth rate of 5%, and the China has a real GDP growth rate of 6%. Money growth in Taiwan is 7%, and money growth in China is 5%. According to the monetary exchange rate model, what is the prediction for the exchange rate in the long run? 

 The Taiwan dollar would appreciate by 1% against the Chinese yuan. 

The Taiwan dollar and the Chinese yuan would not change against each other because the growth rates are offsetting. 

The Taiwan dollar would depreciate by 3% against the Chinese yuan. 

The Taiwan dollar would appreciate by 3% against the Chinese yuan.