PPSC Economics Topic 4 MCQS Test Preparation

Punjab Public Service Commission, PPSC takes the competitive exam to offer the deserving candidates suitable positions in several governmental organizations. Candidates who are willing to apply for the coming PPSC examination session with the subject of Economics are advised to start their preparation as soon as possible. The reason behind this endorsement is that candidates with exceptional results secure suitable positions and the exceptional result is a result of exceptional preparation.

MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Topic 4 Monetary & Fiscal Policy

00:00
Question # 1

An example of nondiscretionary fiscal policy would be.

Question # 2

Credit constitutes.

Question # 3

The government performs its redistribution function mainly through.

Question # 4

The IMF is an agency charged with providing.

Question # 5

When there is no change in central banking holding of international reserve balances a country's

Question # 6

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

Question # 7

a contractionary monetary policy

Question # 8

A good that is used as a medium of exchange as well as being a consumption good is called.

Question # 9

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the

Question # 10

" 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.

Question # 11

If the central Bank wished to Tighten money is would.

Question # 12

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

Question # 13

Which of the following is not an important variable in growth accounting calculations.

Question # 14

According to the supply side model a reduction in the tax rate.

Question # 15

An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the

Question # 16

The largest source of tax revenue for the federal government is.

Question # 17

The board pumps money out of the economy by

Question # 18

The Central Bank controls money and credit with the exception of.

Question # 19

Fiscal policy refers to.

Question # 20

An increase in the money supply other thighs equal shifts the ______ curve to the

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PPSC Economics Chapter 4 Important MCQ's

Sr.# Question Answer
1 An example of discretionary fiscal policy would be.
A. The operation of the welfare sate
B. The operation of the processive federal income tax
C. A tax cut adopted to stimulate consumption
D. An interest rate out in plummeted to stimulate consumption
2 In economics money refers to
A. Income
B. Wealth
C. Assets use and accepted an payment
D. Currency
3 An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the
A. right ; left
B. right ; right
C. left ; left
D. left ; right
4 Why do people keep currency in their pockets when bank deposits pay interest.
A. Because banks might steal your money
B. Because currency is more liquid
C. Because bank deposits lose value due to inflation
D. Because bank deposits lose value due to exchange in interest rates.
5 A shift in tastes toward Pakistan goods ________ net exports and causes the IS curve to shift to the.
A. decreases ; right
B. decreases ; fall
C. increases ; rise
D. increases ; fall
6 Despite an expansionary monetary policy an economy experiences a recession the recession could occur in spite of the right ward shift of the LM curve if
A. The IS curve shifts left ward
B. The IS curve shifts right ward
C. The money supply increase
D. Taxes are cut
7 A shift in tastes toward foreign goods ______ net exports and causes the IS curve to shift to the
A. decreases ; right
B. decrease ; left
C. increase ; right
D. increases ; left
8 Money or paper currency serves at least _______ functions.
A. Three
B. Four
C. Five
D. Seven
9 The IS curve shifts to the left when
A. Taxes increase
B. Government spending increase
C. The money supply increases
D. All of the above occur
10 If the central Bank wished to Tighten money is would.
A. Lower the discount rate
B. Sell government securities
C. Lower the legal reserve ratio
D. Lower the tax rate

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