PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	A business cycle refers to.	A. Fluctuations in the general price level B. changes in the long term growth pattern of the CPI C. The ups and downs of real GDP D. Fluctuations in the level of corporate.
2	If the central bank prints more 10 billion and spends them then as a direct result of this action.	A. M1 and M2 both increases B. Neighed M1 nor M2 increase C. M1 increase but M2 does not D. M2 increased but M1 does not.
3	Following the work of _____________ in the 1960s, and the controversy associated with these views in the 1970s, there was a revival of interest by economists and government in monetary policy.	A. Milton Friedman B. Ronald Reagan C. Margaret Thatcher D. John Maynard Keynes
4	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. rise,; left B. rise ;right C. fall ; left D. fall ; right
5	An increase in expected inflation is likely ot cause.	A. A decline in the demand for real balances B. an increase in the demand for real balances. C. No change i the demand for real balances D. No change in the demand for real balances only of the income elasticity of real money demand is zero.
6	When a government prints money to finance its expenditures it is likely to cause	A. Unemployment B. Inflation C. Deflation D. Reductions in the use of barter
7	The situation in which the imports are greater than exports is termed as.	A. Trade surplus B. Trade deficit C. Budget surplus D. None
8	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
9	In the Keynesian corss diagram, and cline 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. up ; left B. up ; right C. down ; left D. down ; right
10	The ____ lag for fiscal policy is generally _____ than it is for monetary policy.	A. Recognition ; shorter B. Recognition ; longer C. Implementation ; shorter D. Implementation ; longer

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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

By controlling the monetary base economists mean

A business cycle refers to.

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

Which of the following part of M1

The central bank and the government are working against each other if as the government cuts taxes the central bank

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

The opportunity cost of holding currency decrease when

The purpose of fiscal policy is to

The quantity of money demanded increases with income Thus if income increases the opportunity cost of holding money demand and re establish equilibrium in the money market This relation is captured by.

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

The quantity theory of money allows monetarists to obtain a number of economics predictions by assuming a constant.

Consider the five panels of the figure on the previous page in which panel would the simultaneous imposition of restrictive monetary policy and expansionary fiscal policy cause the largest increase in interest rates.

A sale of bonds by the central bank should cause.

If the central bank prints more 10 billion and spends them then as a direct result of this action.

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.

The board pumps money out of the economy by

Factor that cause the IS curve to shift include.

Money is

A shift in tastes toward Pakistan goods ________ net exports and causes the IS curve to shift 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.

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

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.