Question: 2. (30 points) Given the estimated regression equations in which C, Y and R denote consumption, income and interest rates respectively; CI = ao +

2. (30 points) Given the estimated regression equations in which C,

2. (30 points) Given the estimated regression equations in which C, Y and R denote consumption, income and interest rates respectively; CI = ao + 0.90 Zi CL= DO - 0.80 RI RI = Co + 0.70 ZI Z1 = do - 0.50 RI Calculate the OLS estimates of e, and ez for the following regression; Ci = eo + e1 Z1+ ez RI + UL

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