PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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Shama Suleman 21 - May - 2022 12 Min 21 Sec 12/20
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Amjad Ali 07 - Jun - 2023 12 Min 49 Sec 12/20
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DJ DJ 12 - Aug - 2022 11 Min 02 Sec 11/20
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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	An autonomous increase in the value of the domestic exchange rate.	A. Increases output net exports and the interest rate. B. Decreases output net exports and the interest rate C. Decreases output and net exports and increases the interest rate. D. Increase output and decreases net exports and the interest rate.
2	Which of the following events will lead to a decrease in the demand for money.	A. An increase in the level of aggregate output. B. A decrease in the supply of money C. A decrease in the interest rate D. a decrease in the price level
3	To move from point E to point E1 is consistent with.	A. Expectations of a constant price level B. Adaptive expectations that have no adjustment for the period immediately following a change in the actual price C. Rational expectations and NCM D. A and B
4	The near term effect of an unexpected sale of bonds by the central bank is.	A. An increase in interest rates, a risen investment and a rise in GDP B. An increase in interest rates a drop in investment and a drop in GDP C. A decrease in interest rtes a rise in investment and a rise in GDP D. A decrease in interesr rates a drop in investment and a drop in GDP
5	A reduction in government spending causes the equilibrium level of aggregate output to ___________ at any given interest rate and shifts the ________ curve to the.	A. fall ;LM; right B. fall ;IS; Left C. fall ;LM; Left D. rise ;LM; Rifht
6	A good that is used as a medium of exchange as well as being a consumption good is called.	A. A barter money B. A commodity money C. A legal tender D. A debased money
7	A business cycle refers to.	A. Fluctuations in the general price level B. changes in the long term growth pattern of the CPI C. The ups and downs of real GDP D. Fluctuations in the level of corporate.
8	in The Liquidity trap region	A. Fiscal policy is not effective B. Monetary policy is completely ineffective C. Monetary policy is completely effective D. Fiscal policy and monetary policy are equally effective
9	A Political problem with discretionary fiscal policy is the.	A. Contractionary bias B. Big state bias C. Expansionary bias D. Over reaction bias
10	There are ______ methods of measuring GDP	A. Three B. Four C. Five D. None

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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

Which school of economic thought suggested that one possible cause of inflation was a push from the cost side.

If the State bank of Pakistan wished to pursue a light monetary policy it would.

In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift down the equilibrium level of aggregate output to___________ and the IS curve to shift to the.

The IS curve shifts to the left when

The IMF is an agency charged with providing.

Automatic stabilizers

The ____ lag for fiscal policy is generally _____ than it is for monetary policy.

"Far better for central bankers to get out of the fine tuning business instead they should d try to keep.

Fiscal policy refers to.

When the reserve requirement on checking deposits is 0.10 and the Federal Reserve purchases government securities values at Rs. 100,000, the MI money supply.

An autonomous rise in the value of the Rupee makes Pakistan goods _____ expensive relative to foresight goods which ______ net exports

A major advantage of monetary over fiscal policy is that monetary policy

In the money market a condition of excess demand for money can be eliminated by a __________ in aggregate output or a ____ in the interest rate both of which reduce the quantity of money demanded.

One of money's primary roles in the economy comes from the use of money to transfer purchasing power to the future This role of money is called.

The central bank and the government are working against each other if as the government cuts taxes the central bank

The opportunity cost of holding currency decrease when

"A monetary rule need not mean a single baid number If the central bank fears velocity shifts rules could be adopted for adjusting the target in the face of a trends change in velocity "If velocity were trending upward the target money growth rate would be adjusted.

A monetary action consistent with the central bank selling bonds in the open market would be.

Consider the five panels of the figure on the previous page in which of the five would monetary policy be the weakest.

In economics money refers to

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

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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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The lag for fiscal policy is generally _ than it is for monetary policy.

An autonomous rise in the value of the Rupee makes Pakistan goods _ expensive relative to foresight goods which __ net exports

In the money market a condition of excess demand for money can be eliminated by a ______ in aggregate output or a in the interest rate both of which reduce the quantity of money demanded.