This question requires you to use the dataset, us_change that contains information on percentage changes in quarterly personal consumption expenditure, savings and a few other variables. Your task is to forecast Consumption based on Savings. You will use the dynamic regression approach (regression with additional ARIMA errors) to predict Consumption for the next 10 quarters. After estimating the regression model, when making predictions, assume that the future percentage changes in savings is 2 % . Evaluate the model.



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