If in the long run, the U.S. dollar appreciates against the Japanese yen, then O

Question

If in the long run, the U.S. dollar appreciates against the Japanese yen, then O A. Japan has created money at a faster pace than has the United States, and the price level in Japan has risen more rapidiy than the U.S. price level O B. purchasing power parity does not exist between Japan and the United States O C. the United States has created money at a faster pace than has Japan, and the price level in the United States has risen more rapidly than Japan's price level O D. it must be the case that the real exchange rate has also appreciated

Explanation / Answer

in the long run the Us dollar appreciates against the japanese yen then
A. Japan has created money at a faster pace than has the United States and the price level in Japan has risen more rapidly than the US price level
This is in accordance with the purchasing power parity in the long run.

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