Answer: interest rate parity holds
Explanation:
Covered interest arbitrage is a trading strategy that is used by an investor when the person whereby takes advantage of the differences in interest rate between two nations and invest in the currency that brings higher value.
If covered interest arbitrage opportunities do not exist, it simply means that interest rate parity holds.
Explanation:
Income Elasticity of Demand(IED)= Percentage change in quantity demanded/ Percentage change in income
-Percentage change in Q:
%Change in quantity demanded= (q2-q1/q1) = (10-8)/8= 0.25
-Percentage change in Income:
%Change in income= (i2-i1/i1) = (4,500-4,000)/4,000= 0.125
IED= 0.25/0.125= 2
This indicates that the Shaffers are very sensitive to changes in income when it comes to eating out. Which means that changes in income will change significantly the number of times they eat out.
2. Restaurant meals are normal goods, in this case, because when income rises, they ate more in restaurants, then the units consumed for this good increase too.
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Answer and Explanation:
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Explanation:
The question is incomplete as there is no above statement here. Here a general interpretation of the question shall be made. Normally human resource mangers have to go throughout thousands of resumes and it is not always possible for them to read line by line. This can negate chances of getting through for an employee. So they can make it a bit attractive by going some extra edge and using attractive lines that are some in style and structure. They should not bombard the resume with precious English words by just represent their academic and extra curricular sides in brief.