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A somewhat naive researcher is trying to estimate an aggregate consumption function for the country, for...

A somewhat naive researcher is trying to estimate an aggregate consumption function for the country, for which there is a regression between the level of real consumption C over disposable income Y and savings S. The proposed model is C = B1 + B2Y + B3S + u

How good is the adjustment that this researcher will probably get when the regression runs? Is it possible to generalize your conclusion?

Math   Statistics-And-Probability   
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