On my book it says that net interest is "The interest domestic businesses pay minus the interest they receive, plus interest earned from foreigners."
But how can businesses receive interest?
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$\begingroup$ Why shouldn't they receive interest? What do you think is preventing it? $\endgroup$– 410 goneCommented Dec 10, 2016 at 6:46
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$\begingroup$ I thought only households receive interest because they deposit their savings in financial institutions. Thats why im confused. I mean, for example, does Pepsi receive interest or is it only banks? $\endgroup$– John RichardCommented Dec 10, 2016 at 11:13
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1$\begingroup$ Where do you think businesses deposit their cash? $\endgroup$– 410 goneCommented Dec 11, 2016 at 11:11
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Banks and other financial institutions are businesses.
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$\begingroup$ My book doesn't even mention that, thanks. $\endgroup$ Commented Dec 10, 2016 at 11:13