According to the graph shown, what does P on the y-axis stand for?

When the benefits to society of using a product exceed benefits to the user,

a. the product should be strictly regulated b. the product should be taxed c. the product provides a positive externality d. the product is overproduced at the privately determined equilibrium e. in time the product will not be produced

International capital flows tend to reduce the impact of fiscal policy

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