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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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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sidra Naeem 22 - May - 2022 13 Min 44 Sec 13/20
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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

PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	The quantity of money demanded varies.	A. Directly with both prices and output B. Inversely with both prices and output C. Directly with prices and inversely with output D. Inversely with prices and directly with output
2	The near term effect of an unexpected sale of bonds by the central bank is.	A. An increase in interest rates, a risen investment and a rise in GDP B. An increase in interest rates a drop in investment and a drop in GDP C. A decrease in interest rtes a rise in investment and a rise in GDP D. A decrease in interesr rates a drop in investment and a drop in GDP
3	A monetary expansion is characterized by	A. Rising output and interest rates B. Rising output and falling interest rates. C. Constant output and falling interest rates D. Falling output and interest rates
4	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 ______ and the equilibrium level of aggregate output to ______	A. up ; rise B. up ; fall C. down ;rise D. down ; fall
5	The function of money do not include.	A. an exchange of purchasing power B. A unit of account C. A medium of exchange D. A store of value
6	In the Keynesian cross diagram, an increase in autonomous consumer function to shift _______ the equilibrium level of aggregate output to rise and the IS curve to shift to the.	A. up ; left B. up ; right C. down ; left D. down ; right
7	The intersection of the IS and LM curves captures.	A. The equilibrium of the demand and supply sides of the economy B. the equivalence of monetary and fiscal policy C. Joint equilibrium in the goods and money markets D. All of the above
8	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. store of value B. Unit of account C. Medium of exchange D. Standard of deferred payment
9	Which of the following measures is the best measure of money as a medium of exchange.	A. M1 B. M2 C. M3 D. None of the above
10	The equilibrium level of income is.	A. Rs. 360 B. Rs.600 C. Rs.440 D. Rs.500

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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

Short run contractionary Fiscal policy would result in.

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

If the original money supply is MSo and the original demand for money is MDo then

The main role of the Federal Reserve is to

What major advantage of monetary policy over fiscal policy does this clipping underline.

Money is

Employment tends to _______ whwn aggregate output.

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

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.

You move some of your savings account balance into your checking account.

If the Central Bank wanted to decrease the quantity of money held by the public it would.

A shift in tastes loward foreign goods______ net exports and causes the quantity of aggregate output demanded to.

The equilibrium level of saving is.

By controlling the monetary base economists mean

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.

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

The market price of bonds can fluctuate depending on

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 decline in the money supply shifts the LM curve to the left causing the interest rate to ________ and output to___

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

Prepare Complete Set Wise PPSC Economics Topic 4 Monetary & Fiscal Policy MCQs Online With Answers

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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

A decline in the money supply shifts the LM curve to the left causing the interest rate to ______ and output to_