what is national debt interest ? what is private income and personal income, explain with formula and example ? plz give the answers expert ?
National debt interest is the interest paid by the government on loans to meet its consumption and administrative expenditure.
Private income is the income of private sector from all the sources that are earned (income payment) as well as unearned(transfer payment)
pvt. income = NDP at FC + NFIA +National Debt Interest + current transfer income income from domestic product of public sector
Personal income is the total income received by a person
personal income = Pvt. Income -corporation tax - undistributed profit
OR
personal income= NI -Income from domestic product from public sector - corporation tax - undistributed profit + transfer incomes