Explain clearly....

1. The size of the money multiplier

A) cannot be influenced by actions of the Fed

B) declines with a decrease in high-powered money

C) declines as the currency-deposit ratio decreases

D) increases as the reserve-deposit ratio decreases

E) increases as the reserve requirement is increased

2. If the Fed is trying to peg the interest rate, it

A) needs to sell government securities whenever interest rates go up

B) needs to tie the discount rate to the three-month Treasury-bill rate

C) loses control over money supply

D) needs to restrict money supply whenever interest rates increase

E) none of the above

3. Stabilization policies are affected by inside lags, which are

A) longer for monetary policy than for fiscal policy

B) made up of the recognition, decision, and discretionary lags

C) made up of the recognition, decision, and action lags

D) the lengths of time it takes for policies to affect the economy after its implementation

E) caused by bureaucrats inside the government

4. Automatic stabilizers reduce the size of economic fluctuations since they

A) affect aggregate demand and aggregate supply at the same time

B) reduce the outside lag to practically zero

C) reduce the recognition lag to practically zero

D) reduce the fiscal policy multiplier to 1

E) ensure that disposable income falls by less than income after a disturbance