PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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Shiza Amir 25 - May - 2022 02 Min 08 Sec 18/20
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khurram shazzz 02 - Mar - 2022 04 Min 47 Sec 18/20
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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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Ayesha siddiqa 02 - Jul - 2021 19 Min 10 Sec 17/20
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Tayyeba 29 - Jun - 2021 09 Min 28 Sec 16/20
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Funny world with amazing facts 22 - Apr - 2022 06 Min 10 Sec 15/20
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sidra Naeem 22 - May - 2022 13 Min 44 Sec 13/20
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Abdul Qayyum 25 - May - 2024 07 Min 53 Sec 12/20
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Hassan Mehmood 03 - Apr - 2022 08 Min 20 Sec 12/20
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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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Shad Ali Shah 27 - Jul - 2024 15 Min 17 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 money demand.	A. Shift the IS curve to the right B. Shifts the IS curve to the left C. Shift the LM curve to the right D. Shift the LM curve to the left
2	in the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift _____the equilibrium level of aggregate output to ______l and the IS curve Curve to shift to the.	A. rise ; left B. rise ; right C. fall ; left D. fall ; right
3	In the case of an expansionary ___ policy the interest rate rise while in the case of an expansionary _______ policy the interest rate falls.	A. monetary ; monetary B. monetary ; fiscal C. fiscal ; monetary D. fiscal ; fiscal
4	Knowledge of the money supply can lead to good predications of nominal GDP only	A. If the price level is stable B. If the money supply is stable C. Over very short periods of time D. If the determinants of velocity are known
5	Other things equal a decrease in autonomous consumption shifts the _____ curve to the	A. IS ; RIGHT B. IS ; Left C. LM ; Left D. LF ; Right
6	An expansionary monetary policy	A. Reduces interest rates B. Increases real output C. Shifts the LM curve to the right D. All of the above
7	"Far better for central bankers to get out of the fine tuning business instead they should d try to keep.	A. Taxes low B. Budgets balanced C. Money growth low D. Government spending in check
8	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.
9	Under system fixed exchange rates which of the following policies promotes internal balance for a nation.	A. Fiscal policy B. Monetary policy C. Both fiscal policy and monetary policy D. Neither fiscal policy nor monetary policy
10	An autonomous rise in the value of the Rupee makes Pakistan goods _____ expensive relative to foresight goods which ______ net exports	A. Less ; decreases B. Less ; increases C. More ; decreases D. more ; increases

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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

Suppose you are a monetarist and believe in the the monetarist rule which the monetary authorities appear to be following if the economy beings to experience a slight increase in the inflation rte you would recommend that the monetary autorities.

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

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.

A state of government bonds by the central bank should cause

Short run contractionary Fiscal policy would result in.

In the ISLM frame work a contractionary fiscal policy causes aggregate output to ___________ and the interest rate to

A bonds becomes a riskier asset the demand for money_______ and all else constant, the equilibrium interest rate

an asset that can easily be exchanged for goods and services is called a.

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.

Commercial banks

Employment tends to _______ whwn aggregate output.

The economic logic behind granting central bank's independence from governmental the conduct of monetary policy is.

As the interest sensitivity of investment spending increase.

Monetary policy is concerned with influencing.

Monetary policy can affect output.

If the Central Bank wanted to decrease the quantity of money held by the public it would.

What happens to the money supply if the deficit is financed by selling bonds to the central bank.

Money's primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization This function of money is called.

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