Suppose that the rates of inflation expected to prevail for the next year is 5 percent in the United States and 2 percent in Germany (eurozone), and that the forward exchange rate, with one-year maturity, is $1.20/. If PPP holds, what is the spot exchange rate? 0 1.1204 O 1.1657 O 1.2353 O 1.2852 QUESTION 17 1 point Suppose that the rate of inflation expected to prevail for the next year is 4 percent in the United States, and that the forward exchange rate, with one-year maturity, is $1.24/ and the spot rate is $1.22/. If PPP holds, what is the rate of inflation expected to prevail for the next year in the eurozone? O 1.64% O 2.32% O 5.70% O 6.05% Suppose that the rate of inflation expected to prevail for the next year is 1 percent in the eurozone, and that the forward exchange rate, with one-year maturity, is $1.28/ and the spot rate is $1.25/. If PPP holds, what is the rate of inflation expected to prevail for the next year in the United States? O 1.37% O 1.60% O 2.40% O 3.42%