Suppose that you added \(F D D_{t+1}\) as an additional regressor in Equation (16.2). If \(F D D\) is strictly exogenous, would you expect the coefficient on \(F D D_{t+1}\) to be 0 or nonzero? Would your answer change if \(F D D\) is exogenous but not strictly exogenous?

Equation (16.2)

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%ChgP =-0.65 +0.47 FDD, + 0.14 FDD-1 +0.06 FDD-2 (0.23) (0.14) (0.08) (0.06) +0.07 FDD-3 + 0.03 FDD-4 + 0.05 FDD-5 + 0.05 FDD-6- (0.05) (0.03) (0.03) (0.04)