PPSC Economics Topic 4 Monetary & Fiscal Policy

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zaheer hussain 18 - Jan - 2024 14 Min 06 Sec 11/20
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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	Given fixed exchange rates assume Pakistan initiates contractionary monetary ad fiscal policies to combat inflation. these policies will also.	A. Reduce a balance of payments surplus B. Reduce a balance of payments deficit C. Increases both imports and exports D. Decrease both imports and exports
2	The aggregate demand curve is downward sloping because a higher price level.	A. Makes people wealthier and so they spend more B. Causes higher wages and so people spend more C. Cuts the real value of income and so people spend less D. Decreases the real supply of money decreasing spending.
3	using money as a medium of exchange.	A. Requires people to math goods wanted with goods available. B. Reduces the range of feasible exchanges in the economy C. Inhibits economic transactions D. Reduces the need for barter in the economy.
4	An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _______ relative to foreign goods and results in a ______ in net exports.	A. Cheaper ; decline B. Cheaper ; rise C. dearer ; decline D. dearer ; rise
5	An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the	A. Net exports LM right B. Net exports LM left C. Money demand IS right D. Money demand LM left
6	A bank has excess liquidity reserves to lend but is unable to find a willing borrower these will_______ the size of the money multiplier.	A. Reduce B. Increase C. Have no effect on D. Double
7	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
8	What is the significance of underestimating transactions money.	A. Monetary policy will be over simulating the economy B. Monetary policy will be putting a drag on the economy C. there is a need for money that the central bank should be meating. D. The economy has too much money and there frore not enough spending.
9	Identify the three motives of money demand.	A. Accumulative B. Speculative precautionary C. Speculative transaction precautionary D. Precautionary special trisection
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

If the Federal reserve conducts open market __ the money supply __ shifting LM curve to the left.

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the

The main role of the Federal Reserve is to

Keynes suggested that ________ income households consume a ____ proportion of their income than ____ income households.

An example of nondiscretionary fiscal policy would be.

A checking deposit held at a commercial bank is considered ______ of that bank.

Time lags which often erode effectiveness of monetary and fiscal policy measures represent.

Which of the following part of M1

The equilibrium level of saving is.

By financial crowding our economists mean

A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______

Total utility of a commodity is measured by which price of that commodity.

An autonomous increase in the value of the domestic exchange rate.

The Central Bank controls money and credit with the exception of.

The parable of Riding a Switchback suggests that stabilizing policy.

At any given level of the interest rate expectations are likely to be___________ optimistic and planned investment is likely to be ______ when _________ is growing rapidly than when it is growing slowly or falling.

Equilibrium in the money markets can be expressed by the equation i = 9k/h) Y -M/h. The slope of LM decrease when

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

Actual equilibrium is Rs. 1,500 billion and full employment is Rs. 2,500 MPC = 0.75 taxes are zero , and prices are adjustable To eliminate the observed deflationary gap , the government should.

In the ISLM framework the decreasing investment spending believed by Keynes to be the cause of the Great Depression would be illustrated by a shift of the ____ curve to the.

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

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Set 7

Set 8

Set 9

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Set 11

Set 12

Set 13

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

If the Federal reserve conducts open market the money supply shifting LM curve to the left.

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to ___ at any given interest rate and shifts the curve to the

Keynes suggested that ____ income households consume a proportion of their income than income households.

A shift in tastes toward Pakistan goods net exports and causes the quantity of aggregate output demanded to

At any given level of the interest rate expectations are likely to be_ optimistic and planned investment is likely to be when _ is growing rapidly than when it is growing slowly or falling.