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Dear Student,
a) False. Because It is an intermediate expenditure for the firm because it involves purchase of services by one production unit (firm) from another production unit (lawyer). So, it is deducted from the value of output of the firm to arrive at the value added. So, it is not included in national income
b) False because Payment of interest by a firm to a bank is included in national income because it is assumed that loans received by a firm will be used for a production activity which will increase the income of the firm.
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