Tools S on quiz!] Chapter 8 Assignment Attempts Keep the Highest 3 1. Purchasing power parity 1. 2. STEP: 2 of 2 Suppose that exchange rate hetween the dollar and the peso is in equilibrium when inflation in the U.S. rises to 8.50%. At the same time, inflation in Mexico is 3.00%. If the inflation rate in the U.S. is denoted as I, and the inflation rate in Mexico is If, then which of the following expressions represents the percent change in the peso under PPP? -1 1+7; Off 1 11 1+1, +1 1+% 1+/h 1+1 +1 PAP under PPP. According to this formula, percentage change in the peso should be Grade Final Step TOTAL SCORE: 1/3 (to complete this step and unlock the next step) Save & Continue 00 O Grade It Now