In the National Income Accounts, Net Interest Is the Total

question 153

Multiple Choice

In the national income accounts, net interest is the total interest payments received by households on loans made by them minus

• A) interest received from households' ownership of government bonds.
• B) interest payments made by households on their own borrowing.
• C) interest payments made by households to foreign lenders.
• D) taxes paid by households on their interest income.

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Definitions:

Net Sales

The total revenue from goods or services sold by a company, after deducting returns, allowances for damaged goods, and discounts.

End-of-Year

A term that refers to the conclusion of a fiscal or calendar year, a time often used for accounting and inventory purposes.

Additional Costs

Additional costs refer to expenses that are not typically included in the initial budget or cost estimates, such as unexpected fees, charges, or overheads.

Plant Assets

Long-term tangible assets that are used in the production of goods and services and are not intended for resale.