Determine whether each of the following statements regarding the limitations of stabilization policy for the United States is true or false. Include a diagram or explanation to support your answer.

a. Inside lags are a bigger problem for monetary policy compared with fiscal policy. 

b. If households engage in consumption smoothing, then tax cuts have a smaller effect on output.

c. If there is relatively weak pass-through from nominal to real exchange rates, then a fiscal expansion will have a larger effect on output. 

d. The existence of pegged currency blocs limits the ability of both monetary and fiscal policy to affect output.

e. If there are smaller transaction costs associated with trade, then a fiscal contraction will lead to a larger reduction in output.