Question: How can I solve this problem? The answer should be option B Suppose that the rate of inflation in the United Kingdom is 0.8%, and

How can I solve this problem? The answer should be option B Suppose that the rate of inflation in the United Kingdom is 0.8%, and the rate of inflation in Canada is 5.2%. If the CAD appreciates relative to the GBP by 1.7% in real terms, then which of the following would be closest to the magnitude of the nominal appreciation (+) or depreciation (-) of the CAD? a. +2.59% b. -2.55% c. -2.70% d. +6.14% e. -5.81%

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