If the inflation rate exceeds the nominal rate of interest:

Refer to the payoff matrix. Suppose that Speedy Bike and Power Bike are the only two bicycle manufacturing firms serving the market. Both can choose large or small advertising budgets. If this is a repeated game with no cooperation or reciprocity, which cell represents the final outcome we would expect to occur?

A.  A.
B.  B.
C.  C.
D.  D.

Before the Industrial Revolution, living standards in the world:

A.  Were relatively stagnant for long periods of time B.  Were already rising significantly for many decades C.  Are not known, for lack of reliable records from that period D.  Were declining because of rapid increases in population