PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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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	Monetary policy is concerned with influencing.	A. The general level of money wages B. The level of government expenditure C. The price and availability of money D. The level of shares on the stock market
2	A change in the money supply has a greater effect upon equilibrium income.	A. The more interest sensitive private sector spending is. B. The less interest sensitive private sector spending is. C. The smaller the expenditure multiplier is D. The more interest sensitive money holdings are to the rate of interest.
3	As the interest sensitivity of investment spending increase.	A. Monetary policy has a larger effect on output B. Fiscal policy has a larger effect on output C. The multiplier increases D. All of the above
4	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
5	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
6	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
7	an asset that can easily be exchanged for goods and services is called a.	A. Financial asset B. Barter like asset C. Illegitimate asset D. Liquid asset
8	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
9	Which school of economic thought suggested that one possible cause of inflation was a push from the cost side.	A. New classical economists B. Monetarists C. Marxists D. Keynesians
10	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

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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

A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.

An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____

The ratio of debt to GDP will be larger

The implementation lag for monetary policy is generally

As the interest sensitivity of money demand increases

The near term effect of an unexpected sale of bonds by the central bank is.

a contractionary monetary policy

A tax increase __________ disposable income ____ consumption expenditure and shifts the IS curve to the.

Tax incidence is the

A state of government bonds by the central bank should cause

A rise in planned investment spending unrelated to the interest rate causes teh equilibrium level of aggregate output to __________ at shifts the _____ curve to the _______

If young busness professionals in Pakistan suddenly decide that driving japan made cars is an important status symbol net exports will tend to _____________causing aggregate demand to.

The money multiple tells us teh ultimate increase in.

Factor that cause the IS curve to shift include.

In the money market a condition of excess supply of money cna be eliminated by a _________ in aggregate output or a __ in the interest rate , both of which increase the quantity of money demanded.

In the ISLM frame work an expansionary fiscal policy causes aggregate output to _________ and the interest rate to.

Suppose you are a monetarist and believe in the the monetarist rule which the monetary authorities appear to be following if the economy beings to experience a slight increase in the inflation rte you would recommend that the monetary autorities.

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

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.

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

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Set 12

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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 oil prices, such as the oil shocks in the 70 s, lead to ___ there by causing _

A tax increase ______ disposable income consumption expenditure and shifts the IS curve to the.

A rise in planned investment spending unrelated to the interest rate causes teh equilibrium level of aggregate output to ________ at shifts the _ curve to the _____

In the money market a condition of excess supply of money cna be eliminated by a _______ in aggregate output or a in the interest rate , both of which increase the quantity of money demanded.