How does an expansionary monetary policy affect the rate of interest and level of income?

(a) Raises the level of income but lowers the rate of interest
(b) Raises the rate of interest but lowers the level of income
(c) Raises both, the rate of interest and the level of income
(d) Lowers both, the rate of interest and the level of income

Anurag Mishra Professor Asked on 12th January 2016 in Economics.
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    Answer: (a) Raises the level of income but lowers the rate of interest 

    Anurag Mishra Professor Answered on 12th January 2016.
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