Answer :
The correct answer is E: Increased Income.
Explanation:
1. According to the Monetarist transmission mechanism, an increase in the money supply leads to lower interest rates in the economy.
2. Lower interest rates encourage borrowing and spending by both individuals and businesses, leading to increased investments and consumption.
3. The increased investments and consumption result in higher economic activity, which in turn leads to an expansion of the economy and increased income levels for individuals and businesses.
4. Therefore, the final effect of an increase in the money supply, as per the Monetarist view, is increased income in the economy.
