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Giving Reason Explain How the Following Should Be Treated in the Estimation of National Income: Payment of Interest by a Firm to a Bank - CBSE (Arts) Class 12 - Economics

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Question

Giving reason explain how the following should be treated in the estimation of national income:

Payment of interest by a firm to a bank

Solution

Payment of interest by a firm to the bank is included in the estimation of national income because it is only an intermediate expenditure for the firm.

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Solution Giving Reason Explain How the Following Should Be Treated in the Estimation of National Income: Payment of Interest by a Firm to a Bank Concept: Concept of National Income.
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