Question: ( 5 points ) Consider the recursion u _ ( t ) = 3 u _ ( t - 1 ) - b . (
points Consider the recursion ututb a Find the value of b such that the equilibrium solution of this recursion is hatub 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 ututb to a geometric recursion of the form vtlambda vt
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