QUESTION 25 In a closed economy, the equilibrium interest rate and quantity of loanable funds are given where domestic investment(1) equals national saving (S). True False QUESTION 26 Based on the quantity theory of money. if Price level = $20, real GDP(Y) = $40 and Money supply(M) = $400, then Velocity (V) = O A. 1/2. O B. 80 O C. 2. O D.20. QUESTION 27 An increase in the price of large tractors imported into the USA from Russia will cause the GDP deflator to and the consumer price index to O A. decrease; remain unchanged, O B. remain unchanged; decrease O C. remain unchanged; remain unchanged O D. decrease; decrease. QUESTION 28 Suppose total output (real GDP) is $4000 and labor productivity is 8. We can conclude that; O A. the price-level index must be greater than 100 OB. nominal GDP must be $500. O C. real GDP per capita must be $500 O D. the number of worker-hours must be 500