Question Type: MCQ

Question No$.20.$ Mark$/$s: $1\mathrm{.}00|$ Negative Mark$/$s: $0\mathrm{.}00$

If the public is willing to hold whatever amount of money is supplied at a given interest rate, then an open market purchase by the Central Bank will:

Lower the rate of interest and increase the level of income.

Raise the rate of interest and lower the level of income.

Not affect the rate of interest or the level of income

Lower the rate of interest and lower the level of income.