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  3. consider the difference equation yt+1(a+byt) = cyt

Consider the difference equation yt+1(a+byt) = cyt, t = 0,1, .... , where a, b,...

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Algebra

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Consider the difference equation yt+1(a+byt) = cyt, t = 0,1, .... , where a, b, and c are positive constants, and yo > 0. Show that yt > 0 for all t.Define xt = 1/yt. Show that by using this substitution the equation turns into the canonical form.Solve the difference equation yt+1(2+3y) = 4yt, assuming that yo =1/2. What is the limit of y, as t ? ??

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