Question: Suppose you estimate the consumption function' 1/1: = 0'1 + ex; + 1-; and the savings function Z1: :5 1 176 2X; +152; where Y

Suppose you estimate the consumption function' 1/1: = 0'1 + ex; + \"1-; and the savings function Z1: :5 1 \"176 2X; +152; where Y 2 consumption, Z 2 savings, X 2 income, and X = Y + Z, that is, income is equal to consumption plus savings. a. 'What is the relationship, if any, between (1'2 and 2? Show your calculations. b. 'Will the residual sum of squares, RSS, be the same for the two models? Explain. e. Can you compare the R2 terms of the two models? 'Nhy or why not'.P

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