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Giving valid reasons, explain how the following would be treated while estimating domestic income? Payment made by American tourist for goods purchased in India. - Economics

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Question

Giving valid reasons, explain how the following would be treated while estimating domestic income?

Payment made by American tourist for goods purchased in India.

Short/Brief Note
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Solution

Yes, it will be included in domestic income as goods purchased by American tourist is the expenditure made by him in India and will be included as exports.

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Aggregates Related to National Income - Domestic Income
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