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( 5 points ) Consider the recursion ut = 3 ut 1 b . ( a ) Find the value of b such that the
points Consider the recursion ut ut b
a Find the value of b such that the equilibrium solution of this recursion is
b Using the value of b you found in question a make a change of variables and show how this change transforms the affine geometric recursion ut ut b to a geometric recursion of the form vt lambda vt
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