PPSC Economics Topic 4 Monetary & Fiscal Policy

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

When a nations money supply is Rs.1200 billion and the nominal Gros National product is Rs.4800 billion the velocity of money is.

0.25 A
4 B
0.4 C
Rs.4 billion D

Question # 2

An increase in money ___ shifts the LM curve to the _ causing the interest rate to fall and output to rise

demand ; right A
demand ; left B
supply ; right C
supply ; left D

Question # 3

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 # 4

Money and income are.

Mirror image of each other A
Two quite different concepts B
Both measured as a per annum flow C
Two ways of looking at the same thing. D

Question # 5

Identify the three motives of money demand.

Accumulative A
Speculative precautionary B
Speculative transaction precautionary C
Precautionary special trisection D

Question # 6

If there is a financial panic and increased uncertainty about the return in the stock market and bond market what is the likely effect on money demand.

Money demand declines first then rises when inflation increases A
Money demand rises B
The overall effect its ambiguous C
Money demand declines D

Question # 7

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

A barter money A
A commodity money B
A legal tender C
A debased money D

Question # 8

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

Makes people wealthier and so they spend more A
Causes higher wages and so people spend more B
Cuts the real value of income and so people spend less C
Decreases the real supply of money decreasing spending. D

Question # 9

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

a standard of deferred panyment A
A comfortable thing for sleeping B
A medium of exchange C
A store of value D

Question # 10

An increase in spending those results from expansionary _______ policy cause the interest rate to.

fiscal ; rise A
fiscal ; fall B
incomes ; rise C
income ; fall D

Question # 11

Monetary policy is concerned with influencing.

The general level of money wages A
The level of government expenditure B
The price and availability of money C
The level of shares on the stock market D

Question # 12

The market price of bonds can fluctuate depending on

How many bonds were sold A
Who bought the bonds B
The amount of the coupon C
The interest rate D

Question # 13

Money is

An indicator of the scarcity of wants A
Anything that sellers accept i exchange for goods and services. B
A form of barter C
Anything that the government classifies as a trade commodity. D

Question # 14

Which of the following causes M1 demand is decrease.

A fall in the tax rate A
An increase in income B
A fall in the interest rate C
An increase in the use of credit cards D

Question # 15

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 # 16

A shift in tastes loward foreign goods______ net exports and causes the quantity of aggregate output demanded to.

decreases ; rise A
decreases ; fall B
increases ; rise C
increases ; fall D

Question # 17

"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.

Income growth A
Unemployment B
Money growth C
Taxes D

Question # 18

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

decreases ; rise A
decreases ; fall B
Increases ; rise C
Increase ; fall D

Question # 19

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

The IS curve shifts left ward A
The IS curve shifts right ward B
The money supply increase C
Taxes are cut D

Question # 20

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.

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

When a nations money supply is Rs.1200 billion and the nominal Gros National product is Rs.4800 billion the velocity of money is.

An increase in money _______ shifts the LM curve to the _____ causing the interest rate to fall and output to rise

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

Money and income are.

Identify the three motives of money demand.

If there is a financial panic and increased uncertainty about the return in the stock market and bond market what is the likely effect on money demand.

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

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

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

An increase in spending those results from expansionary _______ policy cause the interest rate to.

Monetary policy is concerned with influencing.

The market price of bonds can fluctuate depending on

Money is

Which of the following causes M1 demand is decrease.

An example of nondiscretionary fiscal policy would be.

A shift in tastes loward foreign goods______ net exports and causes the quantity of aggregate output demanded to.

"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.

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

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

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.

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An increase in money ___ shifts the LM curve to the _ causing the interest rate to fall and output to rise

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