and if possible could you help with:

STEP: 2 of 2 Suppose that exchange rate between the dollar and the peso is in equilibrium when inflation in the U.S. rises to 1.50%. At the same time, inflation in Mexico is 9.00% If the inflation rate in the U.S. is denoted as in and the inflation rate in Mexico is lj, then which of the following expressions represents the percent change in the peso under PPP? - 1 -0.0688 +1 17 207.39% 1+1 7.39% I+I +1 Hi, 193.12% under PPP According to this formula, percentage change in the peso should be Grade Final Step STEP: 2 of 2 Suppose that the real interest rate in Japan and the U.S. is 1.50%. Furthermore, assume that the nominal (1-year) interest rate in Japan is 11.50% while the nominal Interest rate over the same time period in the United States is 7.50%. The international Fisher effect theory predicts that the expected Inflation in the U.S. Is 6.00% while the expected inflation in Japan is 10.00%. From the perspective of the United States (expected U.S. Inflation minus expected Japanese inflation), the expected inflation rate differential between the two countries is %. According to purchasing power parity (PPP), using the U.S. as the "home" country, the Japanese Yen should by the same percent as the differential in inflation rates. depreciate Grade Final Step 0/2 (to complete this step and unlock the next step) appreciate