In game theory, the strategy that always yields the highest benefit for the player using it is the

Suppose that the forward rate of Mexican pesos per dollar is selling flat, with both the spot and forward rates trading at 15 pesos per dollar

If the relevant interest rates for a foreign exchange speculator are 3 percent on dollars and 13 percent in pesos, a potential arbitrage operation would involve A) selling pesos in the forward market. B) buying pesos in the forward market. C) borrowing pesos now. D) All of the above.

According to the Taylor rule, if output is above its full-employment level and inflation is less than 2%

A) the Fed should raise the Fed funds rate above 4%. B) the Fed should reduce the Fed funds rate below 4%. C) the Fed should make the Fed funds rate exactly 4%. D) what the Fed should do is ambiguous.