True/False question: Decide whether the following statements are True or False. Explain your reasoning

1. A tax credit is a fixed amount that a taxpayer cannot deduct from taxes owned.
2. When the goverments issue bonds to finance the budget deficit, the interest rate increases.
3. A tax levied on consumers is fully shifted to producers when demand is perfectly elastic.
4. Internalizing the externality happens when either private negotiaions or govenment action lead the price to the party to fully reflect the external costs or benefits of that partys actions.