Suppose that the expected annual inflation rate in Country A is 1.3% and the expected annual inflation rate is 2.5% in Country B. Relative purchasing power parity predicts that Country A's currency will _____ by about _____ over the next year.
a. depreciate; 1.2%
b. depreciate; 3.8%
c. appreciate; 1.2%
d. appreciate; 3.8%