PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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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	If the original money supply is MSo and the original demand for money is MDo then	A. The equilibrium interest rate and savings are 5% and 50 B. The money supply is 200 and equilibrium income is 500 C. The equilibrium interest rate and income are 5% and 600 D. The speculative demand is 25
2	"The impact on this monetary aggregate of extensive finance innovation -the changes in the kinds of deposits and services offered by banks led the central bank to drop M1 as a n intermediate target with the changes in the way the public was holding payments balances the M1 aggregate no longer that the same reliable link to.	A. Tax rates B. The money supply C. Aggregate demand D. Government spending
3	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
4	There are _______ major instrument of monetary policy.	A. Three B. Four C. Five D. None
5	Money is	A. An indicator of the scarcity of wants B. Anything that sellers accept i exchange for goods and services. C. A form of barter D. Anything that the government classifies as a trade commodity.
6	During period of inflation	A. Those people who have fixed incomes benefit B. Every one's real income falls C. those people who enter long term wage agreements benefit D. Those people whose real income rises faster than the general price level benefit
7	When the central Bank ________ the money supply the LM curve shifts to the _______ interest rates ____________ and equilibrium aggregate output.	A. Increase ; right ; fall; increase B. increases ; left ; rise ; decrease C. decreases ; left ;rise ; increases D. decreases ; left ; fall ; increases
8	Fiscal policy refers to.	A. The actions of the central bank in controlling the money supply B. The government's altitude to taxation C. The spending and taxing policies used by the government to influence the economy D. The governments regulation of financial intermediaries.
9	A decline in the money supply shifts the LM curve to the left causing the interest rate to ________ and output to___	A. rise ; rise B. rise ; fall C. fall ; rise D. fall ; fall
10	In an economy experience high interest rates and high unemployment The ISLM frame work predicts that _________ policy has been too.	A. fiscal ; expansionary B. fiscal ; contractionary C. monetary ; expansionary D. monetary ; contractionary

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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

Net taxes are.

The main source of interest profits for banks is.

Fiscal policy is purposeful movements in _____designed to direct an economy

Intermediate goods are meant for

using money as a medium of exchange.

In the 1930s, when Keynes was alive a expansionary fiscal policy taking everything else constant would have led to.

What major advantage of monetary policy over fiscal policy does this clipping underline.

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.

When a nations money supply is Rs.1200 billion and the nominal Gros National product is Rs.4800 billion the velocity of money is.

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 in the quantity of money supplied shifts the money supply curve to the________ and the equilibrium interest rate

Large difference is inflation rates among countries are almost always the result of large difference in.

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

A decline in planned investment spending unrelated to the interest rate focuses the equilibrium level of aggregate output to ________ and shifts the _ curve to the _______

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.

The purpose of fiscal policy is to

The aggregate demand curve is downward sloping because a higher price level.

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.

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.

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

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Set 12

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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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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.

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.

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.