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In monetary economics, the equation of exchange is the relation: = where, for a given period, is the total money supply in circulation on average in an economy. is the velocity of money, that is the average frequency with which a unit of money is spent.
Time value of money problems involve the net value of cash flows at different points in time. In a typical case, the variables might be: a balance (the real or nominal value of a debt or a financial asset in terms of monetary units), a periodic rate of interest, the number of periods, and a series of cash flows. (In the case of a debt, cas
The quantity theory of money (often abbreviated QTM) is a hypothesis within monetary economics which states that the general price level of goods and services is directly proportional to the amount of money in circulation (i.e., the money supply), and that the causality runs from money to prices. This implies that the theory potentially ...
For example, in the IS-LM graph shown here, the IS curve shows the amount of the dependent variable spending (Y) as a function of the independent variable the interest rate (i), while the LM curve shows the value of the dependent variable, the interest rate, that equilibrates the money market as a function of the independent variable income ...
Bang for buck is a concept in utility maximization which refers to the consumer's desire to get the best value for their money. If Walras's law has been satisfied, the optimal solution of the consumer lies at the point where the budget line and optimal indifference curve intersect, this is called the tangency condition. [ 3 ]
The features of the graph = = + can be interpreted in terms of the variables x and y. The y-intercept is the initial value = = at =. The slope a measures the rate of change of the output y per unit change in the input x. In the graph, moving one unit to the right (increasing x by 1) moves the y-value up by a: that is, (+) = +.
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Graph of y = ax 2 + bx + c, where a and the discriminant b 2 − 4ac are positive, with. Roots and y-intercept in red; Vertex and axis of symmetry in blue; Focus and directrix in pink; Visualisation of the complex roots of y = ax 2 + bx + c: the parabola is rotated 180° about its vertex (orange).