PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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zaheer hussain 18 - Jan - 2024 14 Min 06 Sec 11/20
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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	If firms paying employees monthly began paying them weakly then the demand for money would.	A. Rise and income would rise B. Rise and income would fall C. Fall and income would rise D. Fall and income would fall
2	In the money market a condition of excess supply of money cna be eliminated by a _________ in aggregate output or a __ in the interest rate , both of which increase the quantity of money demanded.	A. rise ; rise B. rise ; fall C. fall ; rise D. fall ; fall
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 increase in the quantity of money supplied shifts the money supply curve to the_______ and the equilibrium interest rate	A. right ; falls B. right ; rises C. left ; falls D. left ; rises
5	Employment tends to _______ whwn aggregate output.	A. rise, falls B. rise ; rises C. falls; rises D. Not change ; falls
6	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.
7	As a result of the increase in government expenditures disposable income increases by.	A. Rs.10 billion B. Rs.9 billion C. Rs.20 billion D. Rs.5 billion
8	Why would corporations want to achieve zero balances in their checking accounts.	A. To earn more interest B. To avoid paying taxes C. to keep a low profile D. To circumvent banking regulations
9	If the money supply change was correctly and fully anticipated for a change of M to MI new classical macroeconomics under the assumption of rational expectations would predict a movement from.	A. Pont Eo to point E1 B. Pont Eo to point E2 C. Pont Eo to point E3 D. Pont E3 to point E2
10	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

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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

As the interest sensitivity of money demand increases

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

The purpose of financial intermediaries is.

" A growing number of economists view the Fed's new willingness to take on more of the nation's debt as inflationary in the long run." This inflation worry is because.

Consider the five panels of the figure on the previous page in which panel would fiscal policy be the strongest.

Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a ____ shift of the _____ curve.

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

There are ______ methods of measuring GDP

The main source of interest profits for banks is.

What technical terminology do economists use to refer to how much the money will multiply as this process unfolds.

The purpose of fiscal policy is to

If the Federal reserve conducts open market ________ the money supply _______ shifting the LM curve to the right.

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

A change in the money supply has a greater effect upon equilibrium income.

Which of the following causes M1 demand is decrease.

"The problem with monetarism is that its advocates have seen it as infallible over short periods of time and wish it to be rigid in its application over all periods of time "The advocates of monetarism wish it to the rigid in its application over all periods of time to.

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

Monetary policy can affect output.

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.

The government performs its redistribution function mainly through.

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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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Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a shift of the _ curve.

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

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

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.