Transfer payments are not included in national income because: # randomize
A. Such payments are made to persons living abroad
B. Double counting would result
C. They are illegal
D. There is no method to account for these
Answer: B. Double counting would result
Explanation: Transfer payments are the payments which are made by the government directly to the public without an exchange of any good or service. Transfer payment is included in consumption spending, which is already a part of GDP.
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What will be an ideal response?
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