PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	A state of government bonds by the central bank should cause	A. Bond prices to rise B. an increase in the supply of money C. An increase in chartered banks loans D. A decrease in reserves of the banking system.
2	The largest source of tax revenue for the federal government is.	A. The personal income tax B. The social security tax C. The property tax D. The sales tax
3	Consider the five panels of the figure on the previous page in which panel would the simultaneous imposition of restrictive monetary policy and expansionary fiscal policy cause the largest increase in interest rates.	A. Panel a B. Panel b C. Panel c D. Panel d
4	The budget deficit tends to decrease when	A. GDP increases B. GDP decreases rapidly C. GDP remains unchanged D. GDP decreases slightly
5	A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______	A. decreases ; rise B. decreases ; fall C. Increases ; rise D. Increase ; fall
6	Factor that cause the IS curve to shift include.	A. Change in autocoups consumer spending B. Change in taxes C. Change in government spending D. All of the above
7	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.	A. 40 percent and Rs. 4,000,000 B. 40 percent and Rs. 10,000,000 C. 25 percent and Rs. 2.500,000 D. 25 percent and Rs.10,000,000
8	An item designed as money that is intrinsically worthless could the.	A. A currency note B. A silver coin C. A barter item D. Any tradeable commodity
9	A 15% VAT is a.	A. Proportional income tax B. Fixed excise duty C. Ad valorem indirect tax D. None of the above
10	A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.	A. Raises ; LM; Right B. Lowers; IS ; left C. raises ; IS; right D. Lower ; LM; left

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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

Intermediate goods are meant for

A Political problem with discretionary fiscal policy is 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.

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

In an economy experience high interest rates and high unemployment The ISLM frame work predicts that _________ policy has been too.

When your grandmother keeps her savings hidden under her mattress she is using money as.

As the interest sensitivity of investment spending increase.

What major advantage of monetary policy over fiscal policy does this clipping underline.

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

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

Which of the following would qualify as an aggregate demand shocks.

The parable of Riding a Switchback suggests that stabilizing policy.

According to classical models, the level of employment is determined primarily by

A monetary expansion is characterized by

A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______

Monetary policy is concerned with influencing.

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.

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.

A major advantage of monetary over fiscal policy is that monetary policy

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

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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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.

A shift in tastes toward Pakistan goods net exports and causes the quantity of aggregate output demanded to

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.