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The process generated by the first procedure is recursive:
(+ 4 5) (inc (+ (dec 4) 5)) (inc (+ 3 5)) (inc (inc (+ (dec 3) 5))) (inc (inc (+ 2 5))) (inc (inc (inc (+ (dec 2) 5)))) (inc (inc (inc (+ 1 5)))) (inc (inc (inc (inc (+ (dec 1) 5))))) (inc (inc (inc (inc (+ 0 5))))) (inc (inc (inc (inc 5)))) (inc (inc (inc 6))) (inc (inc 7)) (inc 8) 9
The process generated by the second procedure is iterative:
(+ 4 5) (+ (dec 4) (inc 5)) (+ 3 6) (+ (dec 3) (inc 6)) (+ 2 7) (+ (dec 2) (inc 7)) (+ 1 8) (+ (dec 1) (inc 8)) (+ 0 9) 9
The easiest way to spot that the first process is recursive (without writing out the substitution) is to note that the "+" procedure calls itself at the end while nested in another expression; the second calls itself, but as the top expression.