PPSC Economics Topic 4 Monetary & Fiscal Policy

MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy

Try The MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Topic 4 Monetary & Fiscal Policy

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Question # 1

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 ________

rise ; LM ;right A
rise ; IS ; right B
Fall ; LM ; left C
rise ;IS; Left D

Question # 2

The opportunity cost of holding currency decrease when

Income decreases A
The interest rate on bonds decreases B
The interest rate on money decrease wealth decrease C
Wealth decreases D

Question # 3

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

Controlling the money base through open market operations A
Controlling reserve requirements B
Setting the discount rate of interest C
controlling the stock market D

Question # 4

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

An increase in the reserve ratio A
A reduction in the discount rate of interest B
An increase in government spending. C
a reduction in excise taxes D

Question # 5

When there is no change in central banking holding of international reserve balances a country's

Trae balance always equals 0 A
Current account balance always equals 0 B
Capital account balance always equals 0 C
Balance of payments always equal 0 D

Question # 6

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

up ; right A
up ; left B
down ;left C
down ; right D

Question # 7

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 _

rise ; left A
rise ; right B
fall ; left C
fall ; right D

Question # 8

Fiscal policy refers to.

The actions of the central bank in controlling the money supply A
The government's altitude to taxation B
The spending and taxing policies used by the government to influence the economy C
The governments regulation of financial intermediaries. D

Question # 9

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

up ; right A
up ; left B
down ;left C
down ; right D

Question # 10

Other things equal a decrease in autonomous consumption shifts the _____ curve to the

IS ; RIGHT A
IS ; Left B
LM ; Left C
LF ; Right D

Question # 11

Net taxes are.

Government expenditures minus government revenues. A
Taxes paid by firms and households to the government minus the transfer payments made to firms and household. B
Taxes paid by firms and household to the government plus transfer payments made to firms and hose holds. C
Taxes paid by firms and hose hold to the government minus the cost of collecting the taxes. D

Question # 12

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

more ; iincreases A
less ; increases B
more ; decreases C
more ; increases D

Question # 13

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

Productivity A
Real income growth B
The growth rates of real money demand C
The growth rates of nominal money supplies D

Question # 14

An increase in expected inflation is likely ot cause.

A decline in the demand for real balances A
an increase in the demand for real balances. B
No change i the demand for real balances C
No change in the demand for real balances only of the income elasticity of real money demand is zero. D

Question # 15

The equilibrium level of saving is.

Rs.120 A
Rs.75 B
Rs.40 C
Rs.80 D

Question # 16

An increase in the quantity of money supplied shifts the money supply curve to the_______ and the equilibrium interest rate

right ; falls A
right ; rises B
left ; falls C
left ; rises D

Question # 17

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

The equilibrium interest rate and savings are 5% and 50 A
The money supply is 200 and equilibrium income is 500 B
The equilibrium interest rate and income are 5% and 600 C
The speculative demand is 25 D

Question # 18

The purpose of financial intermediaries is.

To allow more saving than investment A
To discourage consumption spending B
To collect income taxes for the government C
To serve are middlemen between savers and borrowers. D

Question # 19

An example of nondiscretionary fiscal policy would be.

The operation of the welfare state A
A Federal jobs program adopted to stimulate consumption B
A tax cut adopted to stimulate consumption C
An interest rate cut implemented to stimulate consumption D

Question # 20

A tax cut disposable income ___ consumption expenditure and shifts the IS curve to the.

Increases ; increases ; right A
Increases ; decreases ; left B
decreases ; increases ; left C
decreases ; decreases ; right D

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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

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 opportunity cost of holding currency decrease when

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

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

When there is no change in central banking holding of international reserve balances a country's

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

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 _______

Fiscal policy refers to.

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

Other things equal a decrease in autonomous consumption shifts the _____ curve to the

Net taxes are.

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

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

An increase in expected inflation is likely ot cause.

The equilibrium level of saving is.

An increase in the quantity of money supplied shifts the money supply curve to the_______ and the equilibrium interest rate

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

The purpose of financial intermediaries is.

An example of nondiscretionary fiscal policy would be.

A tax cut __ disposable income _____ consumption expenditure and shifts the IS curve to the.

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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 ________

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 _

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

A tax cut disposable income ___ consumption expenditure and shifts the IS curve to the.