PPSC Economics Topic 4 Monetary & Fiscal Policy

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

S

Shiza Amir 25 - May - 2022 02 Min 08 Sec 18/20
K

khurram shazzz 02 - Mar - 2022 04 Min 47 Sec 18/20
S

Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
A

Ayesha siddiqa 02 - Jul - 2021 19 Min 10 Sec 17/20
T

Tayyeba 29 - Jun - 2021 09 Min 28 Sec 16/20
F

Funny world with amazing facts 22 - Apr - 2022 06 Min 10 Sec 15/20
S

sidra Naeem 22 - May - 2022 13 Min 44 Sec 13/20
A

Abdul Qayyum 25 - May - 2024 07 Min 53 Sec 12/20
H

Hassan Mehmood 03 - Apr - 2022 08 Min 20 Sec 12/20
S

Shama Suleman 21 - May - 2022 12 Min 21 Sec 12/20
A

Amjad Ali 07 - Jun - 2023 12 Min 49 Sec 12/20
S

Shad Ali Shah 27 - Jul - 2024 15 Min 17 Sec 12/20
D

DJ DJ 12 - Aug - 2022 11 Min 02 Sec 11/20
Z

zaheer hussain 18 - Jan - 2024 14 Min 06 Sec 11/20
M

Mahnoor NaSir 24 - May - 2022 07 Min 27 Sec 9/20

PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____	A. A movement along the AS curve cost push inflation B. A leftward shift int he AS curve demand pull inflation. C. A right ward shift in the AS Curve cost push inflation D. a left ward shift in the AS curve cost push inflation
2	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
3	The Central Bank controls money and credit with the exception of.	A. Controlling the money base through open market operations B. Controlling reserve requirements C. Setting the discount rate of interest D. controlling the stock market
4	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.
5	"A monetary rule need not mean a single baid number If the central bank fears velocity shifts rules could be adopted for adjusting the target in the face of a trends change in velocity "If velocity were trending upward the target money growth rate would be adjusted.	A. Upward B. Down ward C. To be zero D. To match inflation
6	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
7	A good that is used as a medium of exchange as well as being a consumption good is called.	A. A barter money B. A commodity money C. A legal tender D. A debased money
8	In the money market a condition of excess demand for money can be eliminated by a __________ in aggregate output or a ____ in the interest rate both of which reduce the quantity of money demanded.	A. rise ; rise B. rise; fall C. fall ; rise D. fall ; fall
9	In the case of an expansionary ___ policy the interest rate rise while in the case of an expansionary _______ policy the interest rate falls.	A. monetary ; monetary B. monetary ; fiscal C. fiscal ; monetary D. fiscal ; fiscal
10	The idea that the money supply should change to accommodate changes in aggregate demand is associated with the ideas of.	A. Milton Friedman B. Ronald reagan C. Margaret Thatcher D. John Maynard Keynes

Latest Educational News Stories

Pakistan's Largest Database of Colleges and Universities

BS Programs

University Past Papers

University Results

Exam Results 2024

Study Abroad Programs and Opportunities for Pakistani Students

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

An increase in the money supply shifts the LM curve to the right causing the interest rate to __________ and output to.

A bonds becomes a riskier asset the demand for money_______ and all else constant, the equilibrium interest rate

Automatic stabilizers

If there is a financial panic and increased uncertainty about the return in the stock market and bond market what is the likely effect on money demand.

Factors that cause the IS curve to shift include.

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

The parable of Riding a Switchback suggests that stabilizing policy.

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

Net taxes are.

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

A monetary action consistent with the central bank selling bonds in the open market would be.

If the nominal money supply doubles while real money demand is unchanged what happens to the price level.

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.

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

As the interest sensitivity of investment spending increase.

When considering any kind of economics indicator, prices are important because.

The purpose of financial intermediaries is.

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

Set 1

Set 2

Set 3

Set 4

Set 5

Set 6

Set 7

Set 8

Set 9

Set 10

Set 11

Set 12

Set 13

Set 14

Topic Test

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

PPSC Economics Chapter 4 Important MCQ's

Test Questions

Share your comments & questions here

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

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.