A consumption function is an economic relationship between consumption and income in aggregate terms. This function is estimated by OLS and the results are showed be- low. SpeciÖcally, the dependent variable is the household consumption (C) and the only explicative variable is the household income (I), those observations are weekly recorded and expressed in real terms. The sample size1 and number of parameters to estimate are N = 15 and K = 2 respectively.
Ct = 28:264 + 0:493945 It + "t (8:1789) (0:0461)
The standard errors are provided and they are below the parameters or point estimates.

Question

A consumption function is an economic relationship between consumption and income in aggregate terms. This function is estimated by OLS and the results are showed be- low. SpeciÖcally, the dependent variable is the household consumption (C) and the only explicative variable is the household income (I), those observations are weekly recorded and expressed in real terms. The sample size1 and number of parameters to estimate are N = 15 and K = 2 respectively.
Ct = 28:264 + 0:493945 It + "t (8:1789) (0:0461)
The standard errors are provided and they are below the parameters or point estimates.