Describe How the Graph of the Equation Relates to the Graph

question 428

Multiple Choice

Describe how the graph of the equation relates to the graph of y = x2.
- $$f ( x ) = \frac { 1 } { 4 } x ^ { 2 } - 5$$

• A) vertical stretching by a factor of 4 and a translation 5 units down
• B) vertical shrinking by a factor of \(\frac { 1 } { 4 }\) and a translation 5 units to the left
• C) vertical stretching by a factor of 4 and a translation 5 units to the right
• D) vertical shrinking by a factor of \(\frac { 1 } { 4 }\) and a translation 5 units down

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Definitions:

Real Exchange Rate

The rate at which the currency of one country can be exchanged for that of another, adjusted for inflation, which determines the purchasing power of one currency relative to another.

Nominal Exchange Rate

The rate at which one currency can be exchanged for another currency, not adjusted for inflation.

Real Exchange Rate

The rate at which two currencies can be exchanged after adjusting for inflation differences.

Purchasing-Power Parity

An economic theory stating that in the absence of transaction costs and with efficient markets, equivalent goods should have the same price when converted into a common currency.