The inflation rate in the U.S. is 8%, while the inflation rate in Swiss is 3%. The current exchange rate for the Swiss franc is $1.05. After supply and demand for the Swiss franc has adjusted in the manner suggested by purchasing power parity, the new exchange rate for the Swiss franc will be: $1.00.$1.02.$1.10.$1.08. Question 23 (3.57 points) Assume that the Thailand inflation rate is smaller than the Indonesian inflation rat. This will cause Indonesian consumers to their imports from Thailand and Thailand consumers to their imports from Indonesia. According to purchasing power parity (PPP), this will result in a(n) of the Thai baht. reduce; increase; depreciation increase; reduce; appreciation reduce; increase; appreciation increase; reduce; depreciation