PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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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	The purpose of financial intermediaries is.	A. To allow more saving than investment B. To discourage consumption spending C. To collect income taxes for the government D. To serve are middlemen between savers and borrowers.
2	When the value of the Rupee rises Pakistan goods become _____ expensive relative to foreign goods which ___ exports.	A. more ; iincreases B. less ; increases C. more ; decreases D. more ; increases
3	An increases in the value of the Rupee makes foreign goods cheaper relative to Pakistan goods, resulting in a _______ in net exports and a __ shift of the IS curve	A. fall ; leftward B. rise ; leftward C. fall ; rightward D. rise ; rightward
4	In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.	A. up ; rise B. up ; fall C. down ; rise D. down ; fall
5	When there is no change in central banking holding of international reserve balances a country's	A. Trae balance always equals 0 B. Current account balance always equals 0 C. Capital account balance always equals 0 D. Balance of payments always equal 0
6	Credit constitutes.	A. Saving made available to borrowers B. A form of liquid asset C. bank loans converted into commodity money D. Money used as a standard of deferred payment.
7	How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.	A. Rs.1 billion B. Rs.2 billion C. Rs.0.9 billion D. Rs.0.5 billion
8	A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______	A. decreases ; rise B. decreases ; fall C. Increases ; rise D. Increase ; fall
9	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
10	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. Cheaper ; decline B. Cheaper ; rise C. dearer ; decline D. dearer ; rise

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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

The near term effect of an unexpected sale of bonds by the central bank is.

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.

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

As a result of the increase in government expenditures disposable income increases by.

How do the banks gain from this corporate behavior.

The negative effect on the economy that occurs when average tax rates increases because taxpayers have moved into higher income brackets during an expansion is.

Monetary policy is concerned with influencing.

By controlling the monetary base economists mean

What happens to the money supply if the deficit is financed by selling bonds to the general public.

Actual equilibrium is Rs. 1,500 billion and full employment is Rs. 2,500 MPC = 0.75 taxes are zero , and prices are adjustable To eliminate the observed deflationary gap , the government should.

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

A decrease iin money demand other thing equal shifts the _____ curve to the

If Federal reserve conducts open market sales, the money supply ___ shifting the LM curve to the_____

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.

Factor that cause the IS curve to shift include.

A decrease iin money demand other thing equal shifts the _____ curve to the

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

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

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.

Why do people keep currency in their pockets when bank deposits pay interest.

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

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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 Federal reserve conducts open market sales, the money supply _ shifting the LM curve to the___

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.