Suppose that you have two random variables, X and U, such that E[U[X] = 0. Show that this implies (a) E[U] = 0. (b) cov (X,U) = 0. Hint 1: I posted an old set of slides that reviews expectations and variances. Hint 2: Section 2.3 of Stock and Watson provides a nice review of what happens when you have two random variables.

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