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A point lying under the IS curve represents excessive demand in the goods market.

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How do automatic stabilizers ​work?A.When an increase in national income occurs there will be an increase in income tax collections and an increase in unemployment compensation and welfare payments muting the increase in planned expenditures that would have otherwise resulted.B.When a decline in national income occurs there will be an increase in income tax collections and an increase in unemployment compensation and welfare payments muting the reduction in planned expenditures that would have otherwise resulted.C.When an increase in national income occurs there will be a reduction in income tax collections and a decrease in unemployment compensation and welfare payments muting the reduction in planned expenditures that would have otherwise resulted.D.When a decline in national income occurs there will be a reduction in income tax collections and an increase in unemployment compensation and welfare payments muting the reduction in planned expenditures that would have otherwise resulted.

The​ Fed's credit policy since 2008 hasA.increased the money multiplier.B.lowered the reserve ratio.C.lowered the amount of bank reserves that the private banks keep with the Fed.D.led to a reduction in the money multiplier.

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