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The average U.S. growth rate since 2008 has been 1.5% per year. Using the rule of...

The average U.S. growth rate since 2008 has been 1.5% per year. Using the rule of 72, how long will it take for the size of the U.S. economy to quadruple at this growth rate?

Solutions

Expert Solution

Growth rate = 1.5%

As per rule of 72

# of years it takes for economy to double = 72 / growth rate = 72 / 1.5 = 48 years

# of years it will take for economy to quadruple = 48 * 2 = 96 years

It will take 96 years for the size of US economy to quadruple

                                              

Rahul Sunny answered 1 year ago
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