PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	An increase in money _______ shifts the LM curve to the _____ causing the interest rate to fall and output to rise	A. demand ; right B. demand ; left C. supply ; right D. supply ; left
2	Monetary policy can affect output.	A. this statement is always true B. This statements always false C. This statement is true only in the short run D. This statement is true only in the medium run and the long run
3	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.	A. Is unchaged B. Increase by Rs.100,000 C. Increases by Rs. 1,000,000 D. None of these
4	The budget deficit tends to decrease when	A. GDP increases B. GDP decreases rapidly C. GDP remains unchanged D. GDP decreases slightly
5	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
6	An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____	A. A movement along the AS curve cost push inflation B. A leftward shift int he AS curve demand pull inflation. C. A right ward shift in the AS Curve cost push inflation D. a left ward shift in the AS curve cost push inflation
7	Which policies are expenditure changing policies.	A. Currency devaluation and revaluation B. Import quotas and tariffs C. Monetary and fiscal policy D. Wage and price controls
8	The equilibrium level of saving is.	A. Rs.120 B. Rs.75 C. Rs.40 D. Rs.80
9	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
10	The main source of interest profits for banks is.	A. Checking account fees B. Loans C. Government securities D. Savigng accounts

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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 of the followig does not shift the IS curve .

If the demand for money increase relative to the supply of money

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

Which of the following persons would be considered unemployed.

If firms paying employees monthly began paying them weakly then the demand for money would.

"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.

If the Bank of Pakistan wished to pursue a tight monetary policy is would.

Identify the three motives of money demand.

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

Why would corporations want to achieve zero balances in their checking accounts.

The main source of interest profits for banks is.

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

Credit constitutes.

Which of the following events will lead to a decrease in the demand for money.

An increase in money _______ shifts the LM curve to the _____ causing the interest rate to fall and output to rise

What's the most common way for a central bank to reduce the money supply.

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

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 shift in tastes toward Pakistan goods ________ net exports and causes the IS 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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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 increase in money ___ shifts the LM curve to the _ causing the interest rate to fall and output to rise

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