Using the income approach, net interest is included because
A. households both receive and pay interest.
B. households pay but do not receive interest and firms receive but do not pay interest.
C. firms pay but do not receive interest and households receive but do not pay interest.
D. it is income to the government but not to households nor firms.
Answer: A
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In 1980 the United States announced an embargo on grain exports to the Soviet Union in response to the Soviet invasion of Afghanistan. This embargo was mainly resisted by
A) U.S. grain consumers of bread. B) U.S. grain producers. C) foreign grain producers. D) U.S. communists. E) economists concerned with U.S. terms of trade.
The Bank of the United States faced opposition from which of the following?
A) local banks who resented the Bank's supervision B) advocates of limited government who distrusted its power C) farmers and small businesses who resented the Bank's interference with their ability to obtain loans D) all of the above
If the demand curve facing a firm had a price elasticity of demand equal to infinity and the firm raised its price, its total revenue would:
A. decrease slightly. B. fall to zero. C. not change. D. increase.
To decrease the price level the government could adopt policies that
A. decrease aggregate supply and aggregate demand. B. increase aggregate supply and decrease aggregate demand. C. increase aggregate supply and aggregate demand. D. decrease aggregate supply and increase aggregate demand.