Consider the three equations that estimate consumption as a function

6. Consider the three equations that estimate consumption as a function of income, interest rates, population and the price level. (6 points each part). I Ct = 1000 + 5.7(POPt) + 0.60(GDPt) + -6.0(Rt) II Ct/POPt = 5.0 + 900(1/POPt)+ + O.61(GDPt/POPt) + 1.7(Rt/POPt) a. Suppose you are concerned about heteroscedasticity. What assumption was made in the second equation regarding the error term in the rst equation? Be specic. V31'(Ui) = b. Is the 2\"\" equation consistent with the 1St equation? YES or NO (circle) Determine the MPC for consumption in each model? Model I 9 Model 11 (1. Do the same for the impact of population on consumption. Model I Model II e. A Whites test (9 variables plus constant) was performed on Model one and returned the following statistics: N = 35, R2 of 0.75. Calculate the test statistic and determine if heteroscedasticity is present at the 1% level