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Giving reason explain how should the following be treated in estimating GDP mp.

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(i) Fee to mechanic paid by a firm :- Considered as factor income, so included. 

(ii) interest paid by an individual on car loan from a bank: Not Included- because the individual borrows for consumption and not for production. 

(iii) interest on purchasing a car for use by a firm: Treated as factor payment by the firm because the firm borrows money for carrying out production and therefore included in National Income. 

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