Lower tariffs and quotas cause a country's currency to ________ in the ________ run, everything else held constant

The marginal propensity to consume is 0.50, marginal propensity to invest is 0.20, and the marginal propensity to import is 0.05. What is the size of the multiplier?

A) 1.00 B) 2.86 C) 3.00 D) 0.50

If at current exchange rates it was cheaper to buy a product in country B than country A, we would expect people to sell country A's currency and buy country B's currency, according to the purchasing power parity theory

a. True b. False Indicate whether the statement is true or false