Home / Aptitude Tests / Economics / If Y = income, C = C...

If Y = income, C = Consumption, I = Investment, X = Expor...

If Y = income, C = Consumption, I = Investment, X = Export and M = Import, then national income is

A.

Y = C - I + (x +m)

B.

Y = C + I + (x + m)

C.

Y = C +I +(X - M)

D.

Y =C + I + (m - x)

Correct answer is C

Since national income is the gross domestic product of a country plus all the wages, salaries of its citizens abroad minus earnings of foreign citizens residing in the said country;

National Income = C + I + X - M (exports - imports)