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.
Expert
(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.
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Question: Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment? Q : Speculators actions when they are right When speculators are right, their actions: (1) Cause already depressed prices to drop/fall further. (2) Raise the risks to another firm of doing business. (3) Prevent price refuses from their peaks. (4) Reduce both the phase of prices and their volatility across time.
When speculators are right, their actions: (1) Cause already depressed prices to drop/fall further. (2) Raise the risks to another firm of doing business. (3) Prevent price refuses from their peaks. (4) Reduce both the phase of prices and their volatility across time.
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