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When the Money Market Is Drawn with the Value of Money

question 103

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When the money market is drawn with the value of money on the vertical axis,if the money supply rises


Definitions:

Compound Interest

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Future Value

An estimated future value of a present asset, projected by applying an anticipated growth rate over time.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Compounded Quarterly

A method of calculating interest where the interest is added to the principal amount every quarter, leading to interest being earned on interest.

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