Resolve this problem you are running consumption model

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Keynesian consumption model has been criticized on the ground that assumes constant MPC. To resolve this problem you are running the consumption model for US economy as: C = 0 + 1 Y^2 +U a. Explain how this model can remedy the problem of Keynesian consumption model? b. Explain step by step how you can estimate this model? . c. What are the properties of the estimated B coefficients?

Reference no: EM131109492

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