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2. Economics
3. consider the consumption function given in equation 15 in your...

# Question: consider the consumption function given in equation 15 in your...

###### Question details

Consider the consumption function given in Equation 1.5 in your text:

Ct= βo + β1YDt + ut

Is it reasonable to consider YDt to be exogenous in this equation? Why or why not? (Hint: think back to the macroeconomic models of your introductory macroeconomics class.)