What are the properties of the estimated b coefficients

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Reference no: EM131101566

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 = b0 + b1 Y^b2 +U

Explain how this model can remedy the problem of Keynesian consumption model?

Explain step by step how you can estimate this model

What are the properties of the estimated B coefficients?

Reference no: EM131101566

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