If the money wealth, interest rate, and international effects reduce the quantity of aggregate demand by 3 percent when the price rises by 6 percent and the multiplier is 2, then the slope of the aggregate demand curve is:

Which of the following describes the purchasing power parity theory of exchange rate determination?

a. The exchange rate will adjust in the long run until the interest rate is roughly the same in both countries. b. The exchange rate will adjust in the long run until real GDP per capita is roughly the same in both countries. c. The exchange rate will adjust in the long run until the average price of goods is roughly the same in both countries. d. The exchange rate will adjust in the short run until the average price of goods is roughly the same in both countries. e. Prices adjust in the short run until the exchange rate is roughly the same in both countries.

Commodity egalitarianism suggests that some goods be available to everyone.

A. True B. False C. Uncertain