I need help with the clarification of these answers.

Answer the following true, false, or uncertain with an explanation motivating your answer (you may use graphs and math to support your answer). 1. Suppose that the central bank follows an inflation-targeting rule. Then monetary policy makes income more stable against demand shocks while it makes income more unstable against supply shocks. _ . Under capital budgeting, the federal government selling a highway to the province of Nova Scotia and using the proceeds to retire federal debt would affect the federal budget deficit. [8 marks] . If neither investment nor consumption depends on the interest rate. then the is curve is vertical and monetary policy has no effect on output. Regulators can solve the moral hazard problem of rescuing a financial firm (by the govern- ment) in the midst of a financial crisis if they allow firm's equity holders be wiped out, but protect firm's creditors. . Fiscal policy has a relatively long inside lag, but short outside lag. In contrast. monetary policy has a relatively short inside lag but long outside lag. This is an argument for passive policy