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    Question

    Which of the following should be excluded while

    calculating Gross national Product?
    A Rental incomes Correct Answer Incorrect Answer
    B Interest payments Correct Answer Incorrect Answer
    C Dividends Correct Answer Incorrect Answer
    D Government transfer payment Correct Answer Incorrect Answer

    Solution

    A transfer payment is a payment of money for which there are no goods or services exchanged. Transfer payments commonly refer to efforts by local, state, and federal governments to redistribute money to those in need. Transfer payments are not incorporated in the Gross National Product (GNP) because there are no goods or services offered in return.

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