If the inflation rate in Canada is greater than the inflation rate in Britain,other things held constant,what will happen to the British pound?

A) It will appreciate against the Canadian dollar.
B) It will depreciate against the Canadian dollar.
C) It will remain unchanged against the Canadian dollar.
D) It will appreciate against other major currencies.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

Appreciate

The increase in value of an asset over time.

Canadian Dollar

The official currency of Canada, symbolized as CAD and often referred to as the "loonie."