Kizspy Question: 5
(Choose 1 answer)
Assume all capital is owned by firms, rather than by households. Under this assumption, capital is paid
according to the value of its marginal product
A. only if this income is transmitted to households in the form of interest
B. only if this income is transmitted to households in the form of dividends
C. only if this income is transmitted to households in the form of interest or dividends
D. regardless of whether this income is transmitted to households in the form of interest or dividends or
whether it is kept within firms as retained earnings
