In a simple, private economy, suppose that the MPC is 0.8 and investment rises by $20 million.At the new equilibrium, how much will saving have increased? A)$8 million B)$16 million C)$20 million D)$80 million E)$100 million

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How can we Evaluate a Single Project?

Alex is a hard-working college sophomore. One Saturday, he decides to work nonstop until he has answered 50 practice problems for his economics course. He starts work at 8:00 AM and uses a table to keep track of his progress throughout the day. He notices that as he gets tired, it takes him longer to solve each problem. Time Total Problems Answered 8:00 AM 0 9:00 AM 20 10:00 AM 35 11:00 AM 45 Noon 50   Use the table to answer the following questions. The marginal, or additional, gain from Alex’s second hour of work, from 9:00 AM to 10:00 AM, is   problems.   The marginal gain from Alex’s fourth hour of work, from 11:00 AM to noon, is   problems.   Later, the teaching assistant in Alex’s economics course gives him some advice. “Based on past experience,” the teaching assistant says, “working on 7.5 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour.” For simplicity, assume students always cover the same…