Of course a state allowing slavery can be a democracy. What else would it be when e.g. a majority of the population can vote? What's the name for it?
No, slavery is not "totally democratic" just like any voting restriction is not "totally democratic"; but the presence of slavery does not negate an otherwise functioning democracy, just like not allowing people below x years of age to vote doesn't, either.
Is it democracy when
a) all slaves can vote?
b) slaves are captured abroad and only kept for x years before they are returned to their home country? (c.f. guest workers)
c) one part of the population is in deep monetary debt to another part of the population? (c.f. real life)
d) one part of the population is much richer than the other? (c.f. real life)
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