Which of the following accurately describes how earnings from capital eventually get paid to households?
A)Households can own a stock of capital and rent it to firms.
B)Households lend money to firms, who then pay interest to the households.
C)Households that own stock in firms receive dividends.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the given options are ways in which households can receive earnings from capital. They can own capital and rent it to firms, lend money to firms and earn interest, or own stock in firms and receive dividends.

Which of the Following Accurately Describes How Earnings from Capital