IF EUROPE HAS A REAL GDP GROWTH RATE OF 5%, AND THE UNITED STATES H...

9. If Europe has a real GDP growth rate of 5%, and the United States has a real GDP growth rate of 6%, while money growth in Europe is 7%, and money growth in the United States is 5%, what would the monetary exchange rate model predict for exchange rates in the long run? A) The U.S. dollar would appreciate by 3% against the euro. B) The U.S. dollar would depreciate by 3% against the euro. C) The U.S. dollar and the euro would not change against each other because the growth rates are offsetting. D) The U.S. dollar would appreciate by 1% against the euro.