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Multiple Choice QuestionWhich of the following represents the income earned by households for providing capital to firms?Multiple choice question.InterestMoney supplyWagesInflationDemand for money

Question

Multiple Choice QuestionWhich of the following represents the income earned by households for providing capital to firms?Multiple choice question.InterestMoney supplyWagesInflationDemand for money

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Solution

The income earned by households for providing capital to firms is represented by "Interest". This is because when households provide capital or lend money to firms, they are compensated with interest on the amount they have lent. This interest is a form of income for the households.

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