Economics (M.Phil./Ph.D.) 2017 Panjab University Entrance Exam With Answers

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9.

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

A: Raises the rate of interest and lowers the level of income
B: Raises the level of income but lowers the rate of interest
C: Raises the rate of interest but lowers the level of income
D: Lowers both the rate of interest and level of income

The answer is: B

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