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Figure 21-2. On the left-hand graph, MS represents the supply of money and MD represents the demand for money; on the right-hand graph, AD represents aggregate demand. The usual quantities are measured along the axes of both graphs.
-Refer to Figure 21-2. Which of the following quantities is held constant as we move from one point to another on either graph?
Future Value
The equivalent value of an asset or money at a future date, which equals a certain present-day amount.
Interest Rate
The percentage at which interest is charged or paid on a sum of money, often expressed annually.
Cash Flows
Cash flows refer to the net amount of cash and cash-equivalents being transferred into and out of a business.
Quarterly Savings
Savings accumulated or set aside at the end of every quarter of the fiscal year.
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