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For this question I do not want you to perform any actual model estimation. I want you to consider setting up a system of equations

For this question I do not want you to perform any actual model estimation. I want you to consider setting up a system of equations you would estimate to forecast the target variable. In addition to your equations you should explain why you adopted the structure you did. This includes the variables in the equations and any lag lengths. In particular you need to pay attention to situations like the inclusion of forecasted values of one variable in the equation for another variable. Construct a forecast model for aggregate savings in the US economy. The model must include: disposable income, a measure of interest rates inflation, and at least one other variable of your choice. Detail the relationships as you would model them in a forecast paying attention to the sequence of estimation

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