In a simple, private economy, suppose that the MPC is .8 and investment rises by $20 million. At the new equilibrium, how much will saving have increased?

Which of the following equations is correct?

A) Saving = Disposable income + Consumption B) Saving = Disposable income x Consumption C) Disposable income = Consumption - Saving D) Saving = Disposable income - Consumption

Which of the following is NOT an assumption under which the production possibilities curve is drawn?

A.) The economy's resources are fully employed. B.) The price level is stable. C.) Technology is being held constant. D.) The supplies of factors of production are fixed. E.) The trade-off of one good for another is not constant.