Giving reason, explain how are the following treated in estimating National Income method:
(i) Interest on a car loan paid by an individual.
(ii) Interest on a car loan paid by a government owned company.
(i) Interest on a car loan paid by an individual should not be included while estimating National Income as the loan is taken for consumption purpose.
(ii) Interest on a car loan paid by a government owned company should be included while estimating National Income, as it is taken for production purpose.