Suppose that the purchasing power parity estimate of the dollar/euro exchange rate is $1.30 per euro, and the current spot rate is $1.3 8 per euro. Comparing these two exchange rates from a long-run viewpoint you would ? | MCQ Hive

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Q Suppose that the purchasing power parity estimate of the dollar/euro exchange rate is $1.30 per euro, and the current spot rate is $1.3 8 per euro. Comparing these two exchange rates from a long-run viewpoint you would ?

A A. Anticipate the dollar to depreciate against the euro
B B. Anticipate the dollar to appreciate against the euro
C C. Anticipate the dollar’s exchange rate against the euro to remain constant
D D. Have no anticipation concerning future movements in the dollar/euro exchange rate

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