Explanation:

- Expansionary monetary policy aims to stimulate the economy by increasing the money supply.

- Option 1: Raises the level of income but lowers the rate of interest

- This is correct because an increase in money supply typically leads to lower interest rates, encouraging borrowing and spending, thus raising income.

- Option 2: Raises the rate of interest but lowers the level of income

- This is not typical of expansionary policy, which seeks to lower interest rates.

- Option 3: Raises both, the rate of interest and the level of income

- Expansionary policy usually lowers interest rates, not raises them.

- Option 4: Lowers both, the rate of interest and the level of income

- Income is generally increased, not decreased, by expansionary policy.