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Vibhav
Subject: Economics
, asked on 5/2/18
If income is saved, then it will increase inventory investment by this amount which makes Savings = Investment
However, if Income is invested, then how will Savings = Investment???
Also in investment multiplier, the term 'investment' refers to only final investment expenditure or it includes normal consumption expenditure as well because that too will generate income????
Answer
2
Vibhav
Subject: Economics
, asked on 5/2/18
What will be the treatment of 'Employee Stock Option offered by the Employer to Employee' in National Income Accounting???
The amount of Discount offered on shares by Employers should be a part of COE (Wages and Salaries in Kind) But it should NOT be included in National Income (Purchase of Financial Assets)
So it should be subtracted to nullify the effect
But from which head should I subtract it????(To calculate National Income via Income method)
Answer
1
Vibhav
Subject: Economics
, asked on 5/2/18
Explain the treatment of 'Value of interest Foregone on Loan provided to workers by employers' in National Income Accounting
It should be a part of COE (Wages and Salaries in Kind) but since this loan is most probably used for consumption purposes it should NOT be a part of National Income by income method.
However, since it is added as a part of COE it should be subtracted as well to nullify its effect
From where should I subtract this interest???
Will this be subtracted from Total Interest which includes interest paid on productive as well as non productive loans???
Answer
1
Vibhav
Subject: Economics
, asked on 4/2/18
If income is saved, then it will increase inventory investment by this amount which makes Savings = Investment
However, if Income is invested, then how will Savings = Investment???
Also in investment multiplier, the term 'investment' refers to only final investment expenditure or it includes normal consumption expenditure as well because that too will generate income????
Answer
1
Riya Verma
Subject: Economics
, asked on 3/2/18
Expenditure on intermediate goods will not be included in national income as it is included in final expenditure. Plz explain this line with the help of example
Answer
1
Riya Verma
Subject: Economics
, asked on 3/2/18
Why expenditures incurred by normal residents and government in the foreign country is included in expenditure method? As it does not reveal any current flow of goods and services of domestic country. Explain
Answer
1
Riya Verma
Subject: Economics
, asked on 3/2/18
Why sale of goods and services by general government is deducted while calculating government final consumption expenditure?
Answer
1
Riya Verma
Subject: Economics
, asked on 3/2/18
Q. Please explain the formula of Government Final Consumption Expenditure (GFCE).
Answer
1
Riya Verma
Subject: Economics
, asked on 3/2/18
Why intermediate consumption by firms is not included in expenditure method?
Answer
1
Riya Verma
Subject: Economics
, asked on 3/2/18
What is meant by intermediate consumption by government?
Answer
1
Riya Verma
Subject: Economics
, asked on 3/2/18
Why investment in current assets or cost of inventory sold during the year by business firms are not included in expenditure method? In inventory investment also we only include stock which is lying with the producer.explain
Answer
1
Riya Verma
Subject: Economics
, asked on 3/2/18
Why interest paid by consumers is not included in the national income?
Answer
2
Riya Verma
Subject: Economics
, asked on 3/2/18
Why interest paid by govt. on public debt is not included in the national income?
Answer
1
Riya Verma
Subject: Economics
, asked on 3/2/18
Is there any difference between income tax and corporate tax paid by the company?
Answer
2
Riya Verma
Subject: Economics
, asked on 3/2/18
What is wealth and gift tax?
Answer
1
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However, if Income is invested, then how will Savings = Investment???
Also in investment multiplier, the term 'investment' refers to only final investment expenditure or it includes normal consumption expenditure as well because that too will generate income????
The amount of Discount offered on shares by Employers should be a part of COE (Wages and Salaries in Kind) But it should NOT be included in National Income (Purchase of Financial Assets)
So it should be subtracted to nullify the effect
But from which head should I subtract it????(To calculate National Income via Income method)
It should be a part of COE (Wages and Salaries in Kind) but since this loan is most probably used for consumption purposes it should NOT be a part of National Income by income method.
However, since it is added as a part of COE it should be subtracted as well to nullify its effect
From where should I subtract this interest???
Will this be subtracted from Total Interest which includes interest paid on productive as well as non productive loans???
However, if Income is invested, then how will Savings = Investment???
Also in investment multiplier, the term 'investment' refers to only final investment expenditure or it includes normal consumption expenditure as well because that too will generate income????