Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
Answer:
Yes
Explanation:
because south Africa can't put the money on the side
As a result of the R20 million increase in investment spending, the aggregate spending and income will increase by R38.462.
What is income?
Income, which is typically stated in monetary terms, is the spending and saving opportunity acquired by an entity within a given duration. Conceptually, income is difficult to define, and different fields may have distinct definitions.
When a new investment of R 20 million had been made with the aim of income increase in the South African economy, the current MPS is 0.40, and the tax rate (t) is 0.12.
Now the question that rises is what will be the aggregate spending and income increase as a result of the R20 million increase in investment spending. For this, the calculation will be as follow:
Multiplier will be = 1/ (MPS+MRT) = 1/(0.40 +0.12) = 1/0.52 = 1.923
Thus, the aggregate spending and income increment will be = R20 * 1.923 = R38.462.
Learn more about income from here:
https://brainly.com/question/14732695
#SPJ2
We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.