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

Sr.#	Question	Answer
1	How do the banks gain from this corporate behavior.	A. More loans can be made B. Tax free profits can be made C. Interest rates can be increased D. By circumvent banking regulations
2	Large difference is inflation rates among countries are almost always the result of large difference in.	A. Productivity B. Real income growth C. The growth rates of real money demand D. The growth rates of nominal money supplies
3	In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability 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
4	"Some economists criticized the central bank for not moving in the face of the waning recovery One who prefers anonymity stated the failure to move today leaves us with low inflation a weak economy and climbing jobless claims these are classic signs of an impending downturn The fed fiddles while the economy burns This economist would want to see.	A. A higher interests rate B. A higher reserve requirement C. a decrease in the money supply D. An increase in the money supply
5	In the ISLM framework the decreasing investment spending believed by Keynes to be the cause of the Great Depression would be illustrated by a shift of the ____ curve to the.	A. IS ;right B. IS ;Left C. LM ; Left D. LM ; Right
6	Which of the followig does not shift the IS curve .	A. An increases in autonomous consumption B. An increase in government spending. C. A decline in government spending D. A fall in theinterest rate
7	What major advantage of monetary policy over fiscal policy does this clipping underline.	A. Monetary policy is more effective B. Monetary policy is lss discriminatory C. Monetary policy can influence interest rates D. Monetary policy can be undertaken more quickly
8	If the nominal money supply doubles while real money demand is unchanged what happens to the price level.	A. The price level increases by a factor of four B. The price level doubles C. The price level is unchanged D. The price level falls by one half.
9	Under a fixed exchange rate system an expansionary fiscal policy leads to a	A. Trade account deficit and a capital account surplus. B. Trade account deficit and a capital account deficit C. Trade account surplus and a capital account surplus D. Trade account surplus and a capital accoundt deficit
10	The relation between M2 and inflation is tighter than the relation between M1 and inflation because.	A. M1 is larger than M2 B. The demand for M2 is more stable C. M1 includes more liquid assets the M2 D. None of the above answers is correct.
11	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
12	An example of nondiscretionary fiscal policy would be.	A. The operation of the welfare state B. A Federal jobs program adopted to stimulate consumption C. A tax cut adopted to stimulate consumption D. An interest rate cut implemented to stimulate consumption
13	"The problem with monetarism is that its advocates have seen it as infallible over short periods of time and wish it to be rigid in its application over all periods of time "The advocates of monetarism wish it to the rigid in its application over all periods of time to.	A. Weaken fiscal policy B. Avoid monetary policy errors C. Strengthen the impact of monetary policy D. Ensure the independence of the central bank
14	In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to rise and the IS curve to shift to the	A. up ; right B. up ; left C. down ;left D. down ; right
15	Over time the wealth of society increases and payments technologies get more efficient What is the effect on money demand of these two changes.	A. Money demand rises proportionately to the rise in wealth. B. Money demand rises, but less than proportionately to the rise in wealth. C. The overall effect in ambiguous D. Money demand declines
16	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
17	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
18	"Although he didn't say so, this may ultimately compet the central bank to resort increasingly to managing the money supply by managing banks excess cash reserves the stuff from which the banks create loans". How would the central bank manages these excess reserves.	A. By buying bonds B. By selling bonds C. By changing reserve requirements D. All of the above
19	A decrease iin money demand other thing equal shifts the _____ curve to the	A. IS ; right B. Is ; Left C. LM ; Left D. LM ; Rfight
20	A Political problem with discretionary fiscal policy is the.	A. Contractionary bias B. Big state bias C. Expansionary bias D. Over reaction bias

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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

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

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.

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

Commercial banks

Time lags which often erode effectiveness of monetary and fiscal policy measures represent.

"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.

A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______

If the Federal reserve conducts open market ________ the money supply _______ shifting the LM curve to the right.

In the Keynesian cross diagram a decline 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

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _________ in net exports and a ________shifts of the IS curve.

By financial crowding our economists mean

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

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

According to classical models, the level of employment is determined primarily by

A monetary expansion is characterized by

The implementation lag for monetary policy is generally

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

The ratio of debt to GDP will be larger

The intersection of the IS and LM curves captures.

How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.

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

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A shift in tastes toward Pakistan goods net exports and causes the quantity of aggregate output demanded to

If the Federal reserve conducts open market __ the money supply _ shifting the LM curve to the right.

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _ in net exports and a shifts of the IS curve.