PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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Shiza Amir 25 - May - 2022 02 Min 08 Sec 18/20
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khurram shazzz 02 - Mar - 2022 04 Min 47 Sec 18/20
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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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Ayesha siddiqa 02 - Jul - 2021 19 Min 10 Sec 17/20
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Tayyeba 29 - Jun - 2021 09 Min 28 Sec 16/20
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Funny world with amazing facts 22 - Apr - 2022 06 Min 10 Sec 15/20
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sidra Naeem 22 - May - 2022 13 Min 44 Sec 13/20
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Abdul Qayyum 25 - May - 2024 07 Min 53 Sec 12/20
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Hassan Mehmood 03 - Apr - 2022 08 Min 20 Sec 12/20
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Shama Suleman 21 - May - 2022 12 Min 21 Sec 12/20
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Amjad Ali 07 - Jun - 2023 12 Min 49 Sec 12/20
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Shad Ali Shah 27 - Jul - 2024 15 Min 17 Sec 12/20
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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

Sr.#	Question	Answer
1	A decrease in fully autonomous investment other things equal shifts the ______ curve to the	A. IS ; right B. IS ; Left C. LM ; Left D. LM ; right
2	If a perfectly competitive industry is in long run equilibrium all firms will	A. Have a marginal costs B. Have identical supply curves C. Operate at the point where marginal cost just covers all variable costs D. Have equal fixed costs
3	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
4	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 ; rightward B. IS ; rightwards C. LM ; Leftward D. IS ; Leftward
5	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
6	The main source of interest profits for banks is.	A. Checking account fees B. Loans C. Government securities D. Savigng accounts
7	As the required reserve ratio is decreased the money multiplier.	A. Could either increase or decrease B. Remains the same as long as banks hold no excess reserves C. Increase D. Decreases
8	When there is no change in central banking holding of international reserve balances a country's	A. Trae balance always equals 0 B. Current account balance always equals 0 C. Capital account balance always equals 0 D. Balance of payments always equal 0
9	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
10	If the central bank prints more 10 billion and spends them then as a direct result of this action.	A. M1 and M2 both increases B. Neighed M1 nor M2 increase C. M1 increase but M2 does not D. M2 increased but M1 does not.
11	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
12	What happens to the money supply if the deficit is financed by selling bonds to the central bank.	A. The money supply increases B. The money supply decreases C. The money supply is unaffected D. We cannot tell what will happen to the money supply
13	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
14	The idea that the money supply should change to accommodate changes in aggregate demand is associated with the ideas of.	A. Milton Friedman B. Ronald reagan C. Margaret Thatcher D. John Maynard Keynes
15	Which of the following causes M1 demand is decrease.	A. A fall in the tax rate B. An increase in income C. A fall in the interest rate D. An increase in the use of credit cards
16	Net taxes are.	A. Government expenditures minus government revenues. B. Taxes paid by firms and households to the government minus the transfer payments made to firms and household. C. Taxes paid by firms and household to the government plus transfer payments made to firms and hose holds. D. Taxes paid by firms and hose hold to the government minus the cost of collecting the taxes.
17	Increasing the government budget deficit.	A. Increases output in the long run B. Decreases output in the short run C. Decreases output in the long run. D. Decreases the interest rate in the medium run.
18	Automatic stabilizers	A. Counter balance fluctuations in economic activity. B. Reinforce fluctuations in economic activity C. Do not occur when the economy falls into recession D. Reduces the size of the deflationary gap
19	In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up 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
20	Money or paper currency serves at least _______ functions.	A. Three B. Four C. Five D. Seven

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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

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

Disposable income is obtained by subtracting ________ taxes from personal income

Which of the following measures is the best measure of money as a medium of exchange.

Consider the five panels of the figure on the previous page in which panel would fiscal policy be the strongest.

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

A bonds becomes a riskier asset the demand for money_______ and all else constant, the equilibrium interest rate

Large difference is inflation rates among countries are almost always the result of large difference 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.

Over time the wealth of society increases and payments technologies get more efficient What is the effect on money demand of these two changes.

As the interest sensitivity of investment spending increase.

An expansionary monetary policy

A shift in tastes toward Pakistan goods ________ net exports and causes the IS curve to shift to the.

A good that is used as a medium of exchange as well as being a consumption good is called.

In the ISLM framework an expansionary monetary policy causes aggregate output to _____________ and the interest rate to

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

The main source of interest profits for banks is.

Which of the followig does not shift the IS curve .

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.

An increases in the value of the Rupee makes foreign goods cheaper relative to Pakistan goods, resulting in a _______ in net exports and a __ shift of the IS curve

If the money supply change was correctly and fully anticipated for a change of M to MI new classical macroeconomics under the assumption of rational expectations would predict a movement from.

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

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If the Federal reserve conducts open market the money supply shifting LM curve to the left.

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.

An increases in the value of the Rupee makes foreign goods cheaper relative to Pakistan goods, resulting in a _____ in net exports and a shift of the IS curve