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Consider the following information to answer questions 3.8 to 3.12: Government spending = R450 Exports = R250 Autonomous consumption = R300 Autonomous imports = R150 Investment expenditure = R100 Marginal propensity to consume = 0,6 Full employment level of income = R2 800 3.8 Autonomous expenditure (Ᾱ) is equal to [1] R1000. [2] R950. [3] R1 150. [4] R800.58 3.9 What is the marginal propensity to save? [1] 1 [2] 1.60 [3] 0.60 [4] 0.40 3.10 What is the value of the multiplier? [1] 2 [2] 2.50 [3] 1.50 [4] 1.80 3.11 What is the equilibrium level of income Y*? [1] R1 600 [2] R2 375 [3] R1 800 [4] R2 000 3.12 By how much must investment spending increase to bring about full employment? [1] R300 [2] R200 [3] R150 [4] R170
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