Refer to the diagram. Equilibrium price is:

The activist response to the monetarist platform says that

A) private spending may show some stability, but monetary or fiscal policy designed to stabilize it will just make things worse. B) private spending is stable partly because consumption spending is based on permanent income. C) even if prices are not completely flexible in the short-run, given time there is enough flexibility for the system to return to the natural level of real GDP. D) None of the above.

When a country runs a deficit in its current account, the amount of foreign exchange that the country gets from exporting goods and services and from receipts of unilateral transfers falls short of the amount needed to pay for its imports and to make unilateral transfers. Where does the additional foreign exchange come from?

a. From domestic citizens who purchase foreign goods and services b. From domestic citizens who invest in production facilities, real estate, or financial assets in foreign countries c. From foreigners who invest in domestic production facilities, real estate, or financial assets, and from official government transactions in foreign currency d. From government who buy bonds and stocks from foreigners