【单选题】Assume that the United States faces a 5 percent inflation rate while the U.K has a 7 percent inflation rate. According to the relative PPP, the dollar would be expected to:
A.
appreciate by 2 percent against the British pound
B.
depreciate by 2 percent against the British pound
C.
appreciate by 12 percent against the British pound
D.
depreciate by 12 percent against the British pound