Question: 10.2 In the simple macroeconomic model C = 1 + 2Y + u Y = C + I, described in Exercise 10.1, demonstrate that OLS

10.2 In the simple macroeconomic model C = β1 + β2Y + u Y = C + I, described in Exercise 10.1, demonstrate that OLS would yield inconsistent results if used to fit the consumption function, and investigate the direction of the bias in the slope coefficient.

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