> For what values of θ is Xt a causal function?
Always, by definition. Note that $X_t$ is measurable with respect to $(W_t,W_{t-1})$ hence also measurable with respect to the past sigma-algebra $\sigma(W_s;s\leqslant t)$.
> For what values of θ is Xt a causal function?
Always, by definition. Note that $X_t$ is measurable with respect to $(W_t,W_{t-1})$ hence also measurable with respect to the past sigma-algebra $\sigma(W_s;s\leqslant t)$.