Which of the following statement is correct when it is given a home country and a foreign country, purchasing power parity suggests that

A. the home currency will appreciate if the current home inflation rate exceeds the current foreign inflation rate

B. the home currency will depreciate if the current home interest rate exceeds the current foreign interest rate

C. the home currency will depreciate if the current home inflation rate exceeds the current foreign inflation rate

D. the home currency will depreciate if the current home inflation rate exceeds the current foreign interest rate

Answer: Option C