Estimating rational income
How will you treat the given in estimating rational income of India? Provide reasons for your answer. (i) The value of bonus shares received by the shareholders of a company.(ii) Interest received on loan provided to a foreign company in India.
How will you treat the given in estimating rational income of India? Provide reasons for your answer.
(i) The value of bonus shares received by the shareholders of a company.(ii) Interest received on loan provided to a foreign company in India.
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(i) This is not comprised in national income since it is the return of financial capital and not of goods & services.
(ii) This is comprised in the national income as interest is a factor income and a portion of domestic income.
Implications of fiscal deficit: (A) High fiscal deficit entails a big amount of borrowings in which the government takes more loans to pay back it. It raises the liability of government. Q : Principles of macroeconomics Explain Explain the concept of “economies of scale” and “increasing returns”.
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