Net factor income from abroad is ________________.
A
Exports minus Imports
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B
Visible Exports minus Visible Imports
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C
Factor income received from abroad minus factor income paid abroad
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D
Factor incomes received from abroad
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Solution
The correct option is C Factor income received from abroad minus factor income paid abroad
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.