Equity Premium Puzzle : The Puzzle of the Keynes’ Consumption Multiplier

There are two optimality conditions in the M & P model of 1985. If the constant relative risk aversion is unity (log utility consumption), then correcting for risk-free rates that are “too low” will not prevent the equity optimality condition from seeming “too high” for observable consumption, suggesting there is another puzzle within their seminal paper. Only the returns on equity, conditional on observable consumption, suggest the Puzzle of the Keynes' Consumption Multiplier