# 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:

C_{t}= β_{o} + β_{1}YD_{t} +
u_{t}

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