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Which of the following will be included in national income, while using the income method to calculate the same: (Choose the correct option)
  • a)
    National debt interest.
  • b)
    Interest paid on a loan taken by a household from a bank to buy a car.
  • c)
    Interest received on debentures of a firm bought by a household
  • d)
    Interest paid on a loan taken by a employee from his employer
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following will be included in national income, while usin...
Explanation:
When calculating national income using the income method, we add up all the incomes earned by individuals and businesses within a country. This includes wages, rent, interest, and profits.

a) National debt interest: This is not included in national income as it is not an income earned by individuals or businesses.

b) Interest paid on a loan taken by a household from a bank to buy a car: This is also not included in national income as it is a transfer payment, not an income earned by individuals or businesses.

c) Interest received on debentures of a firm bought by a household: This is included in national income as it is an income earned by the household.

d) Interest paid on a loan taken by an employee from his employer: This is also not included in national income as it is a transfer payment, not an income earned by individuals or businesses.

Therefore, option C is the correct answer as only interest received on debentures of a firm bought by a household is included in national income while using the income method to calculate the same.
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Community Answer
Which of the following will be included in national income, while usin...
Loan taken by a firm for productive activities
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Which of the following will be included in national income, while using the income method to calculate the same: (Choose the correct option)a)National debt interest.b)Interest paid on a loan taken by a household from a bank to buy a car.c)Interest received on debentures of a firm bought by a householdd)Interest paid on a loan taken by a employee from his employerCorrect answer is option 'C'. Can you explain this answer?
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