Why interest paid by govt. on public debt is not included in the national income?
Dear Student,
Interest paid by government on public debt is not included in national income as government takes public debt to meet its consumption purposes . And interest paid on loans taken for consumption purposes are not included in calculating national income.
Hope this information will clear your doubts on this topic.
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 government on public debt is not included in national income as government takes public debt to meet its consumption purposes . And interest paid on loans taken for consumption purposes are not included in calculating national income.
Hope this information will clear your doubts on this topic.
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