Question 1
The interest on loans paid by businesses is called
◦ retained earnings.
◦ depreciation.
◦ net factor payments.
◦ net interest.
Question 2
Interest paid by businesses is
◦ counted in national income, but not in GDP.
◦ not counted in GDP because it is not assumed to flow from the production of goods and services.
◦ not counted in GDP but is counted in GNP because it is paid by U.S. businesses.
◦ included in both GDP and national income.