To answer this problem assume a two-period economy with the following logarithmic utility function: U(Cl, C2) = [mm + 1n(C2)] where C1 and C2 are the consumption in the first and second periods, respectively. Households are endowed with Q1 and Q2 units of consumption goods in periods 1 and 2 and can borrow or lend at the world interest rate, r1=r*. Every household starts period 1 with B: at 0. Households can purchase bonds, B *, which pay the interest rate r1. The terms of trade in periods 1 and 2 are TF1 and TF2 , respectively. Then in this economy, the country adjust to changes in the terms of trade by mostly changing ____________________ and the country adjusts to ____________________ changes in the terms of trade by mostly changing____________________. a) temporary; consumption; permanent; the current account b) temporary; the current account; permanent; consumption c) permanent; the current account; temporary; the current account d) permanent; consumption; temporary; consumption e) None of the above