PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	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
2	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. IS ;right B. IS ;Left C. LM ; Left D. LM ; Right
3	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
4	using money as a medium of exchange.	A. Requires people to math goods wanted with goods available. B. Reduces the range of feasible exchanges in the economy C. Inhibits economic transactions D. Reduces the need for barter in the economy.
5	What is the significance of underestimating transactions money.	A. Monetary policy will be over simulating the economy B. Monetary policy will be putting a drag on the economy C. there is a need for money that the central bank should be meating. D. The economy has too much money and there frore not enough spending.
6	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
7	A shift in tastes toward foreign goods ______ net exports and causes the IS curve to shift to the	A. decreases ; right B. decrease ; left C. increase ; right D. increases ; left
8	What's the most common way for a central bank to reduce the money supply.	A. Collect higher taxes B. Sell bonds to the public C. Buy bounds from the government D. Buy bonds from the public
9	Which of the following part of M1	A. Stock negotiating accounts B. Automatic transfer system accounts C. Negotiable orders of withdrawal accounts D. Demand deposits of mutual saving banks.
10	A monetary expansion is characterized by	A. Rising output and interest rates B. Rising output and falling interest rates. C. Constant output and falling interest rates D. Falling output and interest rates

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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

Which of the following would qualify as an aggregate supply shock.

A Political problem with discretionary fiscal policy is the.

Credit constitutes.

The IMF is an agency charged with providing.

How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.

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

Per Capita income is obtained by dividing National income by

The aggregate demand curve is downward sloping because a higher price level.

Factor that cause the IS curve to shift include.

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

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.

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

Why do people keep currency in their pockets when bank deposits pay interest.

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

Tax incidence is the

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

At any given level of the interest rate expectations are likely to be___________ optimistic and planned investment is likely to be ______ when _________ is growing rapidly than when it is growing slowly or falling.

"Transactions" money is money used as a

An example of nondiscretionary fiscal policy would be.

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

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

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

At any given level of the interest rate expectations are likely to be_ optimistic and planned investment is likely to be when _ is growing rapidly than when it is growing slowly or falling.