Question

Payment of interest by an individual to a bank is ______ in the estimation of National Income. 

Options

• Induded

• Deducted

• Not to be included

• None of the above

Answer 1

Payment of interest by an individual to a bank is not to be included in the estimation of National Income.  

Explanation:

Interest paid to a bank by an individual will 'not be included' in the computation of national income because the consumer takes out a loan for consumption.