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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 439 |
Essay's paper body
Real assets used by a firm ultimately generate income. Financial assets are claims to the income generated by real assets.
Real assets appear only as assets in the balance sheet while financial assets appear on both sides of the balance sheets. So when we aggregate over all balance sheets in an economy, financial assets will cancel out, leaving only the sum of real assets as the net wealth of the aggregate economy...
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Real assets used by a firm ultimately generate income. Financial assets are claims to the income generated by real assets.
Real assets appear only as assets in the balance sheet while financial assets appear on both sides of the balance sheets. So when we aggregate over all balance sheets in an economy, financial assets will cancel out, leaving only the sum of real assets as the net wealth of the aggregate economy...
Essay fragment
General points of the essay
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