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National Income Accounting
Question
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Giving reasons explain whether the following are included in national income.
(i)    Profits earned by a branch of foreign bank.
(ii)   Interest paid by an individual on a loan taken to buy a car.
(iii)   Expenditure on machines for installation in a factory.

Answer

(i) Not included in national income of India as it is earned by a foreign bank.
(ii) Not included because loan is not taken for productive purpose.
(iii) It is included when measured by expenditure method as it is final investment expenditure.

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Normal Residents