Which of the Following Is True of the Rule of 72

question 2

Multiple Choice

Which of the following is true of the rule of 72?

• A)The rule of 72 is used to approximate annual real GDP.
• B)The rule of 72 determines the time required for any value to double if it grows at a constant annual rate.
• C)The rule of 72 is used to calculate the number of years it takes for any quantity to treble in size.
• D)The rule of 72 refers to the fact that real GDP doubles every 6 years.
• E)The rule of 72 refers to the fact that capital growth has consistently contributed 72 percent to the U.S.real GDP.

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