Suppose that purchasing power parity does not hold. If all(or most) prices have increased in Canada and not increased inJapan, then people will generally expect that the foreign exchange value of the dollar will______. The demand for dollars______.

A.

fall; decreases and the supply of dollars increases

B.

fall; increases and the supply of dollars decreases

C.

rise; decreases and the supply of dollars increases

D.

rise; increases and the supply of dollars decreases