The Difference Between the Present and Future Value of an Amount

question 10

Multiple Choice

The difference between the present and future value of an amount is

• A)income
• B)interest
• C)annuity
• D)premium

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Definitions:

Equation of Exchange

The Equation of Exchange is an economic identity that relates the supply of money in an economy to the value of goods and services transactions, commonly represented as MV = PQ.

Modern Monetarists

Economists who follow the beliefs of monetarism that emphasize the role of governments in controlling the amount of money in circulation to influence the economy.

Velocity V

The rate at which money circulates in an economy, typically measured as the ratio of nominal GDP to the money supply.

M Rises

An increase in the money supply within an economy, which could potentially lead to various economic effects such as inflation or stimulation of economic growth.