PPSC Economics Ch 4 Monetary & Fiscal Policy

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

Try The MCQ's Test For PPSC Economics Chapter 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Monetary & Fiscal Policy

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Question # 1

Knowledge of the money supply can lead to good predications of nominal GDP only

If the price level is stable A
If the money supply is stable B
Over very short periods of time C
If the determinants of velocity are known D

Question # 2

What technical terminology do economists use to refer to how much the money will multiply as this process unfolds.

The multiplier A
The money multiplier B
Required reserve ratio C
Open market operations D

Question # 3

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

up ; rise A
up ; fall B
down ;rise C
down ; fall D

Question # 4

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

Productivity A
Real income growth B
The growth rates of real money demand C
The growth rates of nominal money supplies D

Question # 5

Which of the following events will lead to a decrease in the demand for money.

An increase in the level of aggregate output. A
A decrease in the supply of money B
A decrease in the interest rate C
a decrease in the price level D

Question # 6

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

Left ward ; LM A
Right ; LM B
Left ward ; IS C
Left ward ; AD D

Question # 7

A decrease in fully autonomous investment other things equal shifts the ______ curve to the

IS ; right A
IS ; Left B
LM ; Left C
LM ; right D

Question # 8

Fiscal policy is purposeful movements in _____designed to direct an economy

Interest rate A
Legal structures B
Government regulations C
D Government spending and taxes D

Question # 9

The opportunity cost of holding currency decrease when

Income decreases A
The interest rate on bonds decreases B
The interest rate on money decrease wealth decrease C
Wealth decreases D

Question # 10

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.

Milton Friedman A
Ronald Reagan B
Margaret Thatcher C
John Maynard Keynes D

Question # 11

an asset that can easily be exchanged for goods and services is called a.

Financial asset A
Barter like asset B
Illegitimate asset C
Liquid asset D

Question # 12

According to Marshall the basis of consumer surplus is.

Law of diminishing marginal utility. A
Law of equal marginal utility B
Law of proportions C
All of the above D

Question # 13

An autonomous rise in the value of the Rupee makes Pakistan goods _ expensive relative to foresight goods which __ net exports

Less ; decreases A
Less ; increases B
More ; decreases C
more ; increases D

Question # 14

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

IS ; right A
Is ; Left B
LM ; Left C
LM ; Rfight D

Question # 15

How much of the Rs. 5 billion dollar increase in the government expenditures will be financed by bond sales.

Rs.3.5 billion A
Rs.1.5 billion B
Rs. 4.9 billion C
Rs.2.8 billion D

Question # 16

"Far better for central bankers to get out of the fine tuning business instead they should d try to keep.

Taxes low A
Budgets balanced B
Money growth low C
Government spending in check D

Question # 17

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

The money supply increaes A
The money supply decreases B
The money supply is unaffected C
We cannot tell what will happen to the money supply D

Question # 18

Why would corporations want to achieve zero balances in their checking accounts.

To earn more interest A
To avoid paying taxes B
to keep a low profile C
To circumvent banking regulations D

Question # 19

Automatic stabilizers

Counter balance fluctuations in economic activity. A
Reinforce fluctuations in economic activity B
Do not occur when the economy falls into recession C
Reduces the size of the deflationary gap D

Question # 20

The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.

Crowding out A
Recognition lag B
Public sector borrowing requirement C
Fiscal drag D

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PPSC Economics Chapter 4 MCQS Test Preparation

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

PPSC Economics Chapter 4 Monetary & Fiscal Policy

Knowledge of the money supply can lead to good predications of nominal GDP only

What technical terminology do economists use to refer to how much the money will multiply as this process unfolds.

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 ______

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

Which of the following events will lead to a decrease in the demand for money.

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

A decrease in fully autonomous investment other things equal shifts the ______ curve to the

Fiscal policy is purposeful movements in _____designed to direct an economy

The opportunity cost of holding currency decrease when

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.

an asset that can easily be exchanged for goods and services is called a.

According to Marshall the basis of consumer surplus is.

An autonomous rise in the value of the Rupee makes Pakistan goods _____ expensive relative to foresight goods which ______ net exports

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

How much of the Rs. 5 billion dollar increase in the government expenditures will be financed by bond sales.

"Far better for central bankers to get out of the fine tuning business instead they should d try to keep.

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

Why would corporations want to achieve zero balances in their checking accounts.

Automatic stabilizers

The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.

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

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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

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

An autonomous rise in the value of the Rupee makes Pakistan goods _ expensive relative to foresight goods which __ net exports