What is the difference between buying assets and buying liabilities and which groups of people purchase these assets or liabilities?
What will be an ideal response?
Buying assets means buying things that generate income. The wealthy people are able to do this. An example is purchasing a tow truck and hiring a driver to generate towing income. Buying liabilities means buying assets that generate liabilities and additional expenses. This is performed by people in the middle class and is one of the reasons why they are not in the upper class. An example is purchasing a vacation house which will need upkeep such as a new roof, painting, etc.
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