According to rent-seeking theory, which group is most likely to benefit from representative democracy?

The aggregate demand curve is downward sloping because a higher inflation rate leads the central bank to raise ________ interest rates, thereby ________ the level of equilibrium aggregate output., everything else held constant

A) real; lowering B) real; raising C) nominal; lowering D) nominal; raising

If the estimates of the coefficients of interest change substantially across specifications,

A) then this can be expected from sample variation. B) then you should change the scale of the variables to make the changes appear to be smaller. C) then this often provides evidence that the original specification had omitted variable bias. D) then choose the specification for which your coefficient of interest is most significant.