Elly owns a small coffee shop. she has only one employee. one weekend, she decided to take a break from work. she is wondering whether she should trust her employee to run the shop in her absence. if she does not trust him, she would have to keep the shop closed, in which case neither she nor her employee will be able to make money. on the other hand, if she trusts him, he can either cooperate and run the shop, or he can defect and steal from the shop. if he cooperates, both of them will earn money. if he steals from the shop, he will make more money while she will lose. refer to the scenario above. elly should use to make her decision. a. forward induction b. mixed strategies c. backward induction d. her dominant strategy

Suppose that the u.s. dollars-mexican pesos exchange rate is fixed by the u.s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs.which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u.s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u.s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u.s. dollars.