The absolute price elasticity of demand would be the lowest for

In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 6 percent. The nominal interest rate is

A) 3 percent. B) 10 percent. C) 5 percent. D) 6 percent. E) 4 percent.

Traditionally, the Fed lends to:

A. solvent but illiquid banks. B. insolvent and solvent banks. C. solvent, liquid banks. D. insolvent and illiquid banks.