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Suppose K0 = 100 and Assume It Grows at a Constant

Question 39

Multiple Choice

Suppose k0 = 100 and assume it grows at a constant rate gˉX=2\bar { g } _ { X } = 2 percent per year. If yt=kt1/3,y _ { t } = k _ { t } ^ { 1 / 3 } ,
What is the approximate value of y in 50 years?


A) y50=269y _ { 50 } = 269
B) y50=6.45y _ { 50 } = 6.45
C) y50=5.38y _ { 50 } = 5.38
D) y50=1.11y _ { 50 } = 1.11
E) Not enough information is given.

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