PPSC Economics Topic 4 Monetary & Fiscal Policy

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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	You move some of your savings account balance into your checking account.	A. M2 falls and M1 rises B. M1 falls and M2 rises C. M1 and M2 are unchanged D. M1 rises and M2 remains unchanged
2	The purpose of fiscal policy is to	A. Alter the direction of the economy B. Change people's attitudes toward governemnt C. Educate people as to the importance of economics D. Offer insight into the way thing work
3	Large difference is inflation rates among countries are almost always the result of large difference in.	A. Productivity B. Real income growth C. The growth rates of real money demand D. The growth rates of nominal money supplies
4	According to Marshall the basis of consumer surplus is.	A. Law of diminishing marginal utility. B. Law of equal marginal utility C. Law of proportions D. All of the above
5	Which of the following would qualify as an aggregate demand shocks.	A. An unexpected increase in oil prices B. A seasonally expected increase in oil prices C. An unexpected reduction in consumer confidence D. an anticipated tax cut
6	Per Capita income is obtained by dividing National income by	A. Total labor Force in the country B. Unemployed Youth in the country C. Total population of that country D. None
7	During the early years of the Great depression there was a significant decrees n the the money supply that causes. the ______ to shift____	A. LM ; Leftward B. LM ; rightward C. IS ; Leftward D. IS ; rightwards
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	A tax increase __________ disposable income ____ consumption expenditure and shifts the IS curve to the.	A. Increase; increases ; right B. Increase ; decreases ; left C. decreases ; increases ; left D. decreases ; decreases ; left
10	A bonds becomes a riskier asset the demand for money_______ and all else constant, the equilibrium interest rate	A. Rises ; rises B. rises ; falls C. falls ; rises D. falls ; falls

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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

The relation between M2 and inflation is tighter than the relation between M1 and inflation because.

If the Federal reserve conducts open market ________ the money supply _______ shifting the LM curve to the right.

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.

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.

The ____ lag for fiscal policy is generally _____ than it is for monetary policy.

Under system fixed exchange rates which of the following policies promotes internal balance for a nation.

The equilibrium level of income is.

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

The main source of interest profits for banks is.

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.

If a perfectly competitive industry is in long run equilibrium all firms will

An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the

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

A 15% VAT is a.

A shift in tastes toward foreign goods ______ net exports and causes the IS curve to shift to the

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

Given fixed exchange rates assume Pakistan initiates contractionary monetary ad fiscal policies to combat inflation. these policies will also.

The board pumps money out of the economy by

As a result of the increase in government expenditures disposable income increases by.

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

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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If the Federal reserve conducts open market __ the money supply _ shifting the LM curve to the right.

The lag for fiscal policy is generally _ than it is for monetary policy.