PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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Mahnoor NaSir 24 - May - 2022 07 Min 27 Sec 9/20

PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	As the interest sensitivity of money demand increases	A. The multiplier term increases B. Fiscal policy has a greater effect on output C. Monetary policy has a smaller effect on output D. All of the above
2	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.	A. up ; rise B. up ; fall C. down ; rise D. down ; fall
3	During periods of negative demand shocks deficit target reductions such as those mandated in the Gramm Rudman Hollings Act would tend to.	A. Stimulate the economy and increase empolyment. B. Result in additional recessionary declines in employment and income C. Stimulator defiance spending D. Have an automatic stabilizing impact upon the economy
4	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.	A. Less ; higher ; output. B. more ; higher ; output C. less ; lower ; unplanned investment D. more ; lower ; unplanned investment
5	Total utility of a commodity is measured by which price of that commodity.	A. Value in use. B. Value in exchange C. Both of above D. None of above
6	The automatic stabilization function of fiscial policy ensures that government expenditures _________ and government revenues __ during recessions.	A. decrease ; decrease B. decrease ; increase C. Increase ; decrease D. increase ; increase
7	A sale of bonds by the central bank should cause.	A. A fall in the interest rate B. An increase in the money supply C. A decrease in the reserves of the commercial banks D. An increase in the commercial banks loans to the public
8	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	A. up ; right B. up ; left C. down ;left D. down ; right
9	Why do people keep currency in their pockets when bank deposits pay interest.	A. Because banks might steal your money B. Because currency is more liquid C. Because bank deposits lose value due to inflation D. Because bank deposits lose value due to exchange in interest rates.
10	When considering any kind of economics indicator, prices are important because.	A. They reflect the value of goods and services. B. They are established by the government to control population 's needs C. They categorize goods and services by their weight D. Historically they have proved to the good predictors of futures unemployment.

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

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

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the

Monetary policy can affect output.

A decline in the money supply shifts the LM curve to the left causing the interest rate to ________ and output to___

What happens to the money supply if the deficit is financed by selling bonds to the central bank.

Suppose a new law imposes a tax on all trades of bonds and stock What is the likely effect on money demand.

In the 1930s, when Keynes was alive a expansionary fiscal policy taking everything else constant would have led to.

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

Knowledge of the money supply can lead to good predications of nominal GDP only

A Political problem with discretionary fiscal policy is the.

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

in the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift _____the equilibrium level of aggregate output to fall and the IS curve to shift to the.

in the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift _____the equilibrium level of aggregate output to ______l and the IS curve Curve to shift to the.

The ratio of debt to GDP will be larger

Short run contractionary Fiscal policy would result in.

A major advantage of monetary over fiscal policy is that monetary policty.

Factor that cause the IS curve to shift include.

A decrease in the quantity of money supplied shifts the money supply curve to the________ and the equilibrium interest rate

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

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Set 4

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Set 7

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

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

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to ___ at any given interest rate and shifts the curve to the

A decline in the money supply shifts the LM curve to the left causing the interest rate to ______ and output to_

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

in the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift _the equilibrium level of aggregate output to __l and the IS curve Curve to shift to the.