If households receive $100 in interest payments and make interest payments of $110, wages equal $500, rental receipts are $200, royalties are $100, profits are $200, depreciation is $50, and indirect business taxes are $50, then gross domestic income is

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Quizplus · Accepted Answer

Gross domestic income is the sum of wages, rental receipts, royalties, profits, depreciation, and indirect business taxes. In this case, gross domestic income is $500 + $200 + $100 + $200 + $50 + $50 = $1100. However, we must also add in the interest payments received by households, which is $100. Therefore, gross domestic income is $1100 + $100 = $1200.

If Households Receive $100 in Interest Payments and Make Interest