Only the stock of long- term credit gives rise to interest payments andhence distributed profits, because we have no equity held by rentiers andthus no dividend payments of firms to rentiers. By means of this simplification we do not have to distinguish between creditor householdsreceiving interest income, on the one hand, and shareholder householdsreceiving dividend income, on the other hand, and potentially differentsaving propensities, in contrast to what was done for example in Lavoie(1995a). Under these conditions, profits split into profits of enterprise(P F ), which are retained and used for long- term investment finance, andrentiers’ income (R), which is distributed to rentiers’ households and eitherconsumed or saved by them: