Net factor income from abroad is equal to:
(a) NNP at market prices - NDP at market prices.
(b) NDP at factor cost + Depreciation
(C) NDP at factor cost - Depreciation
(d) NNP at market prices + Depreciation.
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Answer:
Net factor income from abroad is factor income received from abroad minus factor incomes paid abroad.
Equation:
Net factor income from abroad= Factor income earned by our residents from the rest of the world - Factor income earned by non- residents in our domestic territory.
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