In Computer Exercise C10.7, you estimated a simple relationship between consumption growth and growth in disposable income. Test the equation for AR( 1) serial correlation (using CONSUMP.RAW).
(ii) In Computer Exercise CI 1.7, you tested the permanent income hypothesis by regressing the growth in consumption on one lag. After running this regression, test for heteroskedasticity by regressing the squared residuals on gct-1, and gc2t-r What do you conclude?