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Consider the Fib Method from the Textbook Shown Below: Public

question 102

Multiple Choice

Consider the fib method from the textbook shown below: public static long fib(int n)
{
If (n <= 2)
{
Return 1; // line #1
}
Else
{
Return fib(n - 1) + fib(n - 2) ; // line #2
}
}
Assume line #2 is changed to this:
Else { return 2 * fib(n - 1) + 2 * fib(n - 2) ; }
What effect will this change have?


Definitions:

Absolute Purchasing Power Parity

The theory that, in the absence of transaction costs and other barriers, identical goods in different countries should have the same price when expressed in a common currency.

Transaction Costs

The expenses incurred when buying or selling goods and services, which may include commissions, fees, and the bid-ask spread.

Covered Interest Arbitrage

An investment strategy that involves exchanging domestic currency for a foreign currency, investing in foreign interest-bearing assets, and using forward contracts to hedge exchange rate risk.

Forward Contract

A special arrangement made between two parties to transact an asset at a pre-agreed price on a set date in the future.

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