Suppose that John Flygare, the owner of a tennis shop in Evanston, Illinois, decides to purchase a new machine that restrings tennis rackets in half the time it formerly took. The new technology costs $1,000 . and the MPC is 0.8 . How much national income will be generated from John's $1,000 initial investment?

a. $200
b. $500
c. $1,000
d. $2,000
e. $5,000

E