PPSC Economics Topic 4 Monetary & Fiscal Policy

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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	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
2	in The Liquidity trap region	A. Fiscal policy is not effective B. Monetary policy is completely ineffective C. Monetary policy is completely effective D. Fiscal policy and monetary policy are equally effective
3	An autonomous increase in the value of the domestic exchange rate.	A. Increases output net exports and the interest rate. B. Decreases output net exports and the interest rate C. Decreases output and net exports and increases the interest rate. D. Increase output and decreases net exports and the interest rate.
4	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	A. up ; right B. up ; left C. down ;left D. down ; right
5	In economics money refers to	A. Income B. Wealth C. Assets use and accepted an payment D. Currency
6	An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _______ relative to foreign goods and results in a ______ in net exports.	A. Cheaper ; decline B. Cheaper ; rise C. dearer ; decline D. dearer ; rise
7	An example of nondiscretionary fiscal policy would be.	A. The operation of the welfare state B. A Federal jobs program adopted to stimulate consumption C. A tax cut adopted to stimulate consumption D. An interest rate cut implemented to stimulate consumption
8	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.
9	In the Keynesian cross diagram a decline 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	A. rise,; left B. rise ;right C. fall ; left D. fall ; right
10	Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a ____ shift of the _____ curve.	A. Left ward ; LM B. Right ; LM C. Left ward ; IS D. Left ward ; AD

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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

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

The Central Bank controls money and credit with the exception of.

An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _______ relative to foreign goods and results in a ______ in net exports.

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

The money multiplier is 4, and the money creating potential of the banking system is Rs. 40,000,000. The legal reserve ratio and the excess reserves are.

When the value of the Rupee rises Pakistan goods become _____ expensive relative to foreign goods which ___ exports.

An increase in government spending causes the equilibrium level of aggregate output to_______ at any given interest rate and shifts the ____ curve to the

A decrease in autonomous consumer expenditure causes the equilibrium level of aggregate output to __________ at any given interest rate and shifts the _______ curve to the __________

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

Net taxes are.

In the Keynesian cross diagram, a decline in autonomous consumer expenditure causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to.

There are ______ methods of measuring GDP

An autonomous increase in money demand.

The purpose of fiscal policy is to

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

How do the banks gain from this corporate behavior.

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

According to the Laffer curve as tax rates increase tax revenues.

Short run contractionary Fiscal policy would result in.

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _________ in net exports and a ________shifts of the IS curve.

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 autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _ relative to foreign goods and results in a in net exports.

When the value of the Rupee rises Pakistan goods become ___ expensive relative to foreign goods which _ exports.

An increase in government spending causes the equilibrium level of aggregate output to___ at any given interest rate and shifts the curve to the

A decrease in autonomous consumer expenditure causes the equilibrium level of aggregate output to ______ at any given interest rate and shifts the _ curve to the ________

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

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

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _ in net exports and a shifts of the IS curve.