Suppose that the purchasing power parity estimate of the dollar/euro exchange rate is $1.30 per euro, and the current spot rate is $1.3 8 per euro. Comparing these two exchange rates from a long-run viewpoint you would ?

• A. anticipate the dollar to depreciate against the euro
• B. anticipate the dollar to appreciate against the euro
• C. have no anticipation concerning future movements in the dollar/euro exchange rate