Question: The following table gives data for real consumption expenditure, real income, real wealth, and real interest rates for the U.S. for the years 19472000. a.

The following table gives data for real consumption expenditure, real income, real wealth, and real interest rates for the U.S. for the years 1947€“2000.
a. Given the data in the table, estimate the linear consumption function using income, wealth, and interest rate. What is the fitted equation?
b. What do the estimated coefficients indicate about the variables€™ relationships to consumption expenditure?

Yd Wealth Year Interest Rate 1947 1948 1035.2 5166.8 -10.351 976.4 1090.0 998.1 5280.8 -4.720 5607.4 1949 1025.3 1095.6 Year Yd Wealth Interest Rate 1977 2992.1 3360.7 13786.3 -1.190 1978 3124.7 3527.5 14450.5 0.113 1979 3203.2 3628.6 15340

Yd Wealth Year Interest Rate 1947 1948 1035.2 5166.8 -10.351 976.4 1090.0 998.1 5280.8 -4.720 5607.4 1949 1025.3 1095.6 1.044 1950 1090.9 1192.7 5759.5 0.407 6086.1 1951 1107.1 1227.0 -5.283 1952 1142.4 1266.8 6243.9 -0.277 1953 1954 1197.2 1327.5 6355.6 0.561 1221.9 1344.0 6797.0 -0.138 1955 1310.4 1433.8 7172.2 0.262 7375.2 1956 1348.8 1502.3 -0.736 1957 1381.8 1539.5 7315.3 -0.261 1393.0 7870.0 1958 1553.7 -0.575 1959 1470.7 1623.8 8188.1 2.296 1510.8 8351.8 1960 1664.8 1.511 1720.0 1961 1541.2 8971.9 1.296 1962 1617.3 1803.5 9091.5 1.396 1963 1684.0 1871.5 9436.1 2.058 1964 1784.8 2006.9 10003.4 2.027 1965 1897.6 2131.0 10562.8 2.112 2.020 1966 2006.1 2244.6 10522.0 1967 2066.2 2340.5 11312.1 1.213 2448.2 1.055 1968 2184.2 12145.4 1969 2264.8 2524.3 11672.3 1.732 2314.5 1970 2630.0 11650.0 1.166 1971 2405.2 2745.3 12312.9 -0.712 1972 2550.5 2874.3 13499.9 -0.156 3072.3 1973 2675.9 13081.0 1.414 -1.043 1974 2653.7 3051.9 11868.8 1975 2710.9 3108.5 12634.4 -3.534 2868.9 1976 3243.5 13456.8 -0.657 Year Yd Wealth Interest Rate 1977 2992.1 3360.7 13786.3 -1.190 1978 3124.7 3527.5 14450.5 0.113 1979 3203.2 3628.6 15340.0 1.704 1980 3193.0 3658.0 15965.0 2.298 1981 3236.0 3741.1 15965.0 4.704 1982 3275.5 3791.7 16312.5 4.449 1983 3454.3 3906.9 16944.8 4.691 3640.6 3820.9 1984 4207.6 17526.7 5.848 1985 4347.8 19068.3 4.331 1986 3981.2 4486.6 20530.0 3.768 1987 4113.4 4582.5 21235.7 2.819 1988 4279.5 4784.1 22332.0 3.287 1989 4393.7 4906.5 23659.8 4.318 1990 4474.5 5014.2 23105.1 3.595 1991 4466.6 5033.0 24050.2 1.803 1992 24418.2 25092.3 4594.5 5189.3 1.007 1993 4748.9 5261.3 0.625 1994 4928.1 5397.2 25218.6 2.206 1995 5075.6 5539.1 27439.7 3.333 1996 5237.5 5677.7 29448.2 3.083 1997 5423.9 5854.5 32664.1 3.120 1998 5683.7 6168.6 6320.0 35587.0 3.584 1999 5968.4 39591.3 3.245 2000 6257.8 6539.2 38167.7 3.576

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