Interest Paid by Households and by the Government Is

Multiple Choice

Interest paid by households and by the government is

A) counted in national income, but not in GDP.
B) not counted in GDP because it is not assumed to flow from the production of goods and services.
C) not counted in GDP but is counted in GNP because it is paid by U.S. citizens to people living in the United States.
D) included in both GDP and GNP because it represents an expenditure by one group and a receipt of income by another group.