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If the Marginal Propensity to Consume in the Economy Is

question 8

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If the marginal propensity to consume in the economy is 0.8 and the government increases its spending this year by R10 billion, what will be the additional increase in expenditure in the economy next year?


Definitions:

Closed Circulatory System

A circulatory system where blood is enclosed within vessels and circulates unidirectionally from the heart through the body and back to the heart.

Arthropod Success

The evolutionary success of arthropods, characterized by their adaptable exoskeleton, segmented bodies, and jointed limbs, making them the most diverse group of animals.

Jointed Appendages

Refers to appendages with joints, enabling movement, commonly found in arthropods such as insects, spiders, and crustaceans.

Nematocysts

Specialized cells in cnidarians, such as jellyfish, that eject a stinging thread for capturing prey or defense.

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