According to the Constant Growth Rate Rule, If a Variable $y _ { t } = y _ { 0 } ( 1 + \bar { g } ) ^ { t }$

Multiple Choice

According to the constant growth rate rule, if a variable starts at some initial value y₀ at t = 0 and grows at $y _ { t } = y _ { 0 } ( 1 + \bar { g } ) ^ { t }$ at a constant rate $\bar { g } ,$
Then the value of the variable in three periods is given by:

A) $y _ { 3 } = y _ { 0 } ( 1 - \bar { g } ) ^ { 3 }$
B) $y _ { t } = y _ { 0 } ( 1 + \bar { g } ) ^ { t }$
C) $y _ { 3 } = y _ { 0 } ( 1 + \bar { g } ) ^ { 3 }$
D) $y _ { 3 } = y _ { 0 } ( 1 + 3 \bar { g } )$
E) $y _ { 3 } = 3 y _ { 0 } ( 1 - \bar { g } )$