|Comparing reason explain how should the following be treated in estimating National Income:|
|(i) Interest paid by banks on deposits by individuals.|
|(ii) National debt interest.|
|(i) Interest is a factor payment by a producer, so, interest paid by banks on deposits by individuals is included in the estimation of National Income.|
|(ii) National debt interest is a transfer payment and this loan is taken for consumption purposes. So, it is not included in the estimation of National Income.|
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