PPSC Economics Topic 4 Monetary & Fiscal Policy

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Mahnoor NaSir 24 - May - 2022 07 Min 27 Sec 9/20

PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	Aggregate output and the interest rate are ______ related to government spending and are ___ related to taxes.	A. Positively ; positively B. Positively ; negatively C. negatively ; positively D. negatively ; negatively
2	A decrease iin money demand other thing equal shifts the _____ curve to the	A. IS ; right B. Is ; Left C. LM ; Left D. LM ; Rfight
3	When a government prints money to finance its expenditures it is likely to cause	A. Unemployment B. Inflation C. Deflation D. Reductions in the use of barter
4	A shift in tastes toward Pakistan goods ________ net exports and causes the IS curve to shift to the.	A. decreases ; right B. decreases ; fall C. increases ; rise D. increases ; fall
5	An increase in the money supply shifts the LM curve to the right causing the interest rate to __________ and output to.	A. rise ; rise B. rise ; fall C. fall ; rise D. fall ; fall
6	The negative effect on the economy that occurs when average tax rates increases because taxpayers have moved into higher income brackets during an expansion is.	A. Fiscal drag B. The Laffer curve C. Bracket creep D. Debt burden
7	Equilibrium in the money markets can be expressed by the equation i = 9k/h) Y -M/h. The slope of LM decrease when	A. k increases and h increase B. k increases and h decrease C. k decrease and h increase D. k decrease and h decrease
8	In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up the equilibrium level of aggregate output to _______ and the IS curve to shift to the _______	A. rise ; left B. rise ; right C. fall ; left D. fall ; right
9	Factor that cause the IS curve to shift include.	A. Change in autocoups consumer spending B. Change in taxes C. Change in government spending D. All of the above
10	The real money demand doubles while the nominal money supply is unchanged what happens to the price level.	A. The price level increase by a factor of four B. The price level doubles C. The price level is unchanged D. The price level falls by one half.

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PPSC Economics Topic 4 MCQS Test Preparation

MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy

PPSC Economics Topic 4 Monetary & Fiscal Policy

An increase in spending those results from expansionary _______ policy cause the interest rate to.

How much of the Rs. 5 billion dollar increase in the government expenditures will be financed by bond sales.

In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.

A good that is used as a medium of exchange as well as being a consumption good is called.

Which of the following would qualify as an aggregate supply shock.

The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.

If the central Bank wished to Tighten money is would.

Knowledge of the money supply can lead to good predications of nominal GDP only

In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up the equilibrium level of aggregate output to _______ and the IS curve to shift to the _______

If the Bank of Pakistan wished to pursue an expansionary monetary policy it would.

The opportunity cost of holding currency decrease when

A decline in the money__________ shifts the LM curve to the ____ causing the interest rate to rise and output to fall.

A shift in tastes toward foreign goods ______ net exports and causes the IS curve to shift to the

The ratio of debt to GDP will be larger

An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____

A decrease iin money demand other thing equal shifts the _____ curve to the

How do the banks gain from this corporate behavior.

The rate of which central bank lends to commercial banks is known as

As the interest sensitivity of investment spending increase.

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _________ in net exports and a ________shifts of the IS curve.

Prepare Complete Set Wise PPSC Economics Topic 4 Monetary & Fiscal Policy MCQs Online With Answers

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Set 9

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Set 11

Set 12

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Set 14

Topic Test

Top Scorers Of PPSC Economics Topic 4 Monetary & Fiscal Policy MCQ`s Test

PPSC Economics Chapter 4 Important MCQ's

Test Questions

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In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up the equilibrium level of aggregate output to _ and the IS curve to shift to the _

A decline in the money______ shifts the LM curve to the causing the interest rate to rise and output to fall.

An increase in oil prices, such as the oil shocks in the 70 s, lead to ___ there by causing _

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _ in net exports and a shifts of the IS curve.