Question: QUESTION 4 (5 Marks) Considering the following model: Cr = ap to Yr + a2Ct-1 + uit It = Bo + BIR+ + Belt-1 +

QUESTION 4 (5 Marks) Considering the following model: Cr = ap to Yr + a2Ct-1 + uit It = Bo + BIR+ + Belt-1 + 121 Re = wothYr + 12Mi + 131 Yt = Ct +h + Gr Where: C+ denotes real consumption, Y+ denotes real national income, I, denotes real investments, M, denotes real money supply Re denotes the interest rate, and G- denotes real government expenditures. I. Identify the endogenous and exogenous variables in the model. (2 Marks) II. Check the identifiability of the model by applying both the order and the rank conditions for identification

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