Use the rule of 72 to determine how long it takes for real GDP to double if real GDP grows at 3% per year.

Name: Use the rule of 72 to determine how long it takes for real GDP to double if real GDP grows at 3% per year.
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Question

Quizplus · Accepted Answer

The rule of 72 states that the number of years required to double your money is equal to 72 divided by the rate of return. In this case, the rate of return is 3%, so it would take approximately 24 years (72 divided by 3) for real GDP to double. Therefore, the correct answer is B.

Use the Rule of 72 to Determine How Long It