PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	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
2	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.
3	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
4	Fiscal policy is purposeful movements in _____designed to direct an economy	A. Interest rate B. Legal structures C. Government regulations D. D Government spending and taxes
5	The economic logic behind granting central bank's independence from governmental the conduct of monetary policy is.	A. To eliminate seignior age B. To allow open market operations C. To enhance the credibility of monetary policy. D. None of the above
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	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	If the demand for money increase relative to the supply of money	A. Interest rates will trend upward B. Interest rates will trend downward C. Interest rates are not affected by increases in money demand D. Interest rates will behave randomly
9	The market price of bonds can fluctuate depending on	A. How many bonds were sold B. Who bought the bonds C. The amount of the coupon D. The interest rate
10	Factors that cause the IS curve to shift include.	A. Changes in autonomous consumer spending B. Changes in government spending C. Changes in investment spending related to business confidence D. All of the above

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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

When the reserve requirement on checking deposits is 0.10 and the Federal Reserve purchases government securities values at Rs. 100,000, the MI money supply.

Time lags which often erode effectiveness of monetary and fiscal policy measures represent.

During the early years of the Great depression there was a significant decrees n the the money supply that causes. the ______ to shift____

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

The rate of which central bank lends to commercial banks is known as

in The Liquidity trap region

A state of government bonds by the central bank should cause

To move from point E to point E1 is consistent with.

The increase in base money divided by the corresponding induced increasing commercial bank deposits is the.

The near term effect of an unexpected sale of bonds by the central bank is.

An example of nondiscretionary fiscal policy would be.

If the original money supply is MSo and the original demand for money is MDo then

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

Aggregate output and the interest rate are ______ related to government spending and are ___ related to taxes.

In the ISLM frame work a contractionary fiscal policy causes aggregate output to ___________ and the interest rate to

Equilibrium in the money markets can be expressed by the equation i = 9k/h) Y -M/h. The slope of LM decrease when

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

The situation in which the imports are greater than exports is termed as.

Net taxes are.

Prepare Complete Set Wise PPSC Economics Topic 4 Monetary & Fiscal Policy MCQs Online With Answers

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Set 8

Set 9

Set 10

Set 11

Set 12

Set 13

Set 14

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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During the early years of the Great depression there was a significant decrees n the the money supply that causes. the __ to shift

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

Aggregate output and the interest rate are ____ related to government spending and are _ related to taxes.