We Are Analyzing the Effects of Regime Type on Corruption

Multiple Choice

We are analyzing the effects of regime type on corruption rates with the following model: Corruption = 10 - 0.1 GDP (per capita) - 2.0 Democracy
Where Corruption is an index of corruption, GDP (per capita) is measured in thousands of dollars, and Democracy is a dummy variable that is equal to one if a country is a democracy and 0 otherwise. Suppose we want to know the estimated effect on corruption of an extra thousand dollars per capita for a democratic country. Our estimate implies the change in predicted corruption will be

A) 0.1 higher
B) 0.1 lower
C) 2.1 higher
D) 2.1 lower