According to relative purchasing power parity, if Belgian prices are i

According to relative purchasing power parity, if Belgian prices are increasing 10% faster than Japanese prices,

A) the yen should fall 10% versus the Belgian franc.
B) the yen should rise 10% versus the Belgian franc.
C) prices in Belgium should fall 10%.
D) prices in Japan should rise 10%.
E) prices in Japan will rise 5% and the yen will rise 5%.

ANSWER

B