A dominant strategy is a strategy that a player should take only if the other player cheats.

Assuming all else equal, inflation can:

A) reduce the real interest rate, and increase the real wage rate. B) increase both the real interest rate and the real wage rate. C) increase the real interest rate, and reduce the real wage rate. D) reduce both the real interest rate and the real wage rate.

Under the EMS, Germany set the system's

A) monetary policy while the other European countries pegged their currencies to the DM. B) fiscal policy while the other European countries pegged their currencies to the DM. C) monetary policy while the other European countries kept their currencies fluctuating relative to the DM. D) fiscal policy while the other European countries kept their currencies fluctuating relative to the DM. E) monetary policy, while other European countries maintained their traditional policies.