Which of the following goods is given in the textbook as an example of a good whose price is subject to volume discounts?

The nominal interest rate will be less than the real interest rate when

A) the rate of inflation is negative. B) the real interest rate is negative. C) the rate of inflation is positive and increasing. D) the rate of inflation is positive but decreasing.

During the contraction phase of the business cycle,

a. prices fall relative to costs, reducing profit margins. b. costs fall relative to prices, reducing profit margins. c. prices fall relative to costs, increasing profit margins. d. costs fall relative to prices, increasing profit margins.