Undistributed profits ________ counted as part of GDP because ________.
A)are not;households are not paid by the firms
B)are;they can be used to buy other goods
C)are;they are considered income paid to households and loaned back to firms
D)are not;they are considered an intermediate good
E)are;firms are required to pay corporate income taxes on them

Question

Quizplus · Accepted Answer

Undistributed profits are considered as income paid to households, which is then loaned back to firms for investment purposes. Therefore, they are counted as part of GDP.

Undistributed Profits ________ Counted as Part of GDP Because ________

Undistributed Profits Counted as Part of GDP Because