(c) [5pts] To determine whether or not past values of personal disposable income growth rates help to predict consumption growth rates, you estimate the following relationship. ANC 1.695 +0.126 ALnCt-1 +0.153 ALCt-2 +0.088 A LuYt-1, (0.484) (0.099) (0.103) (0.076) where LnC is the log consumption, and LnY is the disposable income. What does the Granger ausality test suggest about the inclusion of lagged income growth as a predictor of consumption growth? Show your work.

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