Canada’s inflation rate is 2% over one year but the inflation rate in the us is only 1%. according to ppp what should happen to the us dollar / canadian dollar exchange rate? a) the us dollar depreciates in the long runb) the canadian dollar depreciates in the long runc) inflation has no effect on the exchange rate in the long rund) we cannot tell the effect of exchange rate in the long run without information about the interest rate in the two countriese) we cannot determine the effect of the exchange rate without knowing whether the two countries are experiencing economic growth or not