Suppose Canada and the U.S., on a flexible exchange rate, have real growth rates of 2%, and a risk premium of 1% (Canada is riskier). Canada's real interest rate is 4%, the U.S. nominal interest rate is 8%, and the value of the Canadian dollar is falling by 6% per year. Canada's inflation rate is: a) less than or equal to 8% b) 9% c) 10% d) more than 10% Please someone explain with the calculations. not a straight forward answer