When the demand for money becomes less responsive to changes in income, the LM curve becomes ________ and it also shifts to the ________

In the open-economy macroeconomic model, other things the same, an increase in the exchange rate raises the quantity of dollars supplied in the market for foreign-currency exchange

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

If purchasing-power parity holds, a dollar will buy

a. more goods in foreign countries than in the United States. b. as many goods in foreign countries as it does in the United States. c. fewer goods in foreign countries than it does in the United States. d. None of the above is implied by purchasing-power parity.