Economic equivalence is when: 0 Goods or services have the same monetary value 0 Purchasing power in different locations is the same 0 There is no difference in actual and constant dollars 0 We are indifferent between a future payment and a current sum of money Present value is: O Monetary value of a gift O Monetary value in the current time period O Monetary value in a past time period compared to a future time period O Monetary value of a sum that includes inflation