Why rich people tend to borrow money (maximize debt) when they have a lot of liquid to

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Why rich people tend to borrow money (maximize debt) when they have a lot of liquid to use when they are investing?

Hypothesis: Rich individuals choose to leverage debt for various financial benefits, such as increasing returns on investments, reducing tax liability, preserving liquidity for other purposes, and taking advantage of unique opportunities.

Discuss: The hypothesis

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Oct 20, 2023 03:09 AM

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Why rich people tend to borrow money (maximize debt) when they have a lot of liquid to

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The hypothesis that rich individuals choose to leverage debt for various financial benefits is rooted in several strategic considerations 1 Increasing ... View the full answer

Microeconomics An Intuitive Approach with Calculus

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