An economist believes that the consumption patterns of a household can be determined by using the equation

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An economist believes that the consumption patterns of a household can be determined by using the equation C = a + bI, where I is the income, a denotes a positive number, and b a percentage.

a. Is the economist using a model?

b. How would you test this?

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3E Economics

ISBN: 9781292411019

3rd Global Edition

Authors: Daron Acemoglu, David Laibson , John List

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