Expenditure Method Exception

Expenditure Method Exception - be saved and deposited with...

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Expenditure Method Exception a) As noted earlier, those who receive pension, insurance and other benefits contribute to expenditure but do not contribute in a country’s productive activities in any way. All such expenditure will have to be set aside from the national income accounts. b) On the other hand, part of the income genuinely earned may not be spent at all and not even
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Unformatted text preview: be saved and deposited with the banks . Such a practice is called hoarding of income or of purchasing power . The national income accounts cannot be satisfactory to the extent of such hoarded income....
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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