Fred has no idea what the Ultimatum Game has to tell us about economic theory. You explain to Fred that the outcome of laboratory tests of the Ultimatum Game suggests:

Select one: a. Firms will cut prices if competitors cut prices first, but are reluctant to be the first mover. b. People are willing to suffer an economic loss to punish those they deem as being unfair. c. Central banks will renege on past promises to control inflation when it actually comes time to pursue contractionary monetary policies. d. Reduction in unemployment benefits will result in more unemployed workers taking job offers as they now must work of face economic hardships.