Consistency of FGLS requires:

A. ?utto be uncorrelated with xt-1, xt, and xt+1.
B. ?utto be uncorrelated with xt and xt+1.
C. ?utto be correlated with xt and xt+1.
D. ?utto be correlated with xt-1, xt, and xt+1.


Answer: A

Economics

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