It uses dynamic binding.

In Java it would look like something this (but it's less useful without proper closures):

  abstract class Bool {
    void ifTrue(Runnable f, Runnable g); 
  }

  class True extends Bool {
    void ifTrue(Function f, Function g) {
      f.run();
    }
  }

  class False extends Bool {
    void ifTrue(Function f, Function g) {
      g.run();
    }
  }

  Bool b;

  b.ifTrue(new Runnable() {
      public void run() {
         System.out.println("It's true!");
      }
    }
  , new Runnable() {
      public void run() {
         System.out.println("Not true!");
      }
    }
  );