5. (5%) In an open-economy framework:
(A) if the home inflation rate is 5% and the foreign inflation rate is 2%, then the relative purchasing power parity'implies that the home country would expect its currency to appreciate by 3%.
(B) if a country adopts the fixed exchange rate regime, it gives up the control of its money supply.
(C) The law of one price prohibits price discrimination.
(D) The terms of trade are the amount of home goods that can be exported for each unit of foreign goods imported.