Question: C12.6 (i) 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

C12.6 (i) 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 C11.7, you tested the permanent income hypoth- esis by regressing the growth in consumption on one lag. After running this regression, test for heteroskedasticity by regressing the squared residuals on gc, and gc What do you conclude?

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