Why interest paid by consumers is not included in the national income?
Dear Student,
Interest paid by consumers is not included in national income as loans taken by consumers are for consumption purposes. And interest paid on loans for consumption purposes are not included in calculating national income.
Hope this information will clear your doubts .
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards
Interest paid by consumers is not included in national income as loans taken by consumers are for consumption purposes. And interest paid on loans for consumption purposes are not included in calculating national income.
Hope this information will clear your doubts .
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards