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Why are Net current transfers from abroad added to National Income?

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Question

Why are Net current transfers from abroad added to National Income?

Options

  • They are savings of non-departmental government enterprises

  • They are Government income

  • They are social securities

  • They are inflow from the rest of the world

MCQ
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Solution

Net current transfers from abroad represent an inflow from the rest of the world. This inflow accrues to the private sector and is added.

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