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

An expansionary monetary policy

Reduces interest rates A
Increases real output B
Shifts the LM curve to the right C
All of the above D

Question # 2

How do the banks gain from this corporate behavior.

More loans can be made A
Tax free profits can be made B
Interest rates can be increased C
By circumvent banking regulations D

Question # 3

When a government prints money to finance its expenditures it is likely to cause

Unemployment A
Inflation B
Deflation C
Reductions in the use of barter D

Question # 4

The quantity of money demanded varies.

Directly with both prices and output A
Inversely with both prices and output B
Directly with prices and inversely with output C
Inversely with prices and directly with output D

Question # 5

A monetary expansion is characterized by

Rising output and interest rates A
Rising output and falling interest rates. B
Constant output and falling interest rates C
Falling output and interest rates D

Question # 6

Suppose you are a monetarist and believe in the the monetarist rule which the monetary authorities appear to be following if the economy beings to experience a slight increase in the inflation rte you would recommend that the monetary autorities.

Increase the money growth rate slightly A
Decrease the money growth rate slightly B
Leave the money supply growth unchanged C
Enact a one time slight decrease in the money supply D

Question # 7

If Federal reserve conducts open market sales, the money supply _ shifting the LM curve to the___

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

Question # 8

Which of the following causes M1 demand to 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 # 9

The budget deficit tends to decrease when

GDP increases A
GDP decreases rapidly B
GDP remains unchanged C
GDP decreases slightly D

Question # 10

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 # 11

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.

Pont Eo to point E1 A
Pont Eo to point E2 B
Pont Eo to point E3 C
Pont E3 to point E2 D

Question # 12

If young busness professionals in Pakistan suddenly decide that driving japan made cars is an important status symbol net exports will tend to _____________causing aggregate demand to.

fall ; fall A
fall ; rise B
rise ; fall C
rise ; rise D

Question # 13

You move some of your savings account balance into your checking account.

M2 falls and M1 rises A
M1 falls and M2 rises B
M1 and M2 are unchanged C
M1 rises and M2 remains unchanged D

Question # 14

Which of the following events will lead to a decrease in the demand for money.

An increase in the level of aggregate output. A
A decrease in the supply of money B
A decrease in the interest rate C
a decrease in the price level D

Question # 15

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

rise ; rise A
rise ; fall B
fall ; rise C
fall ; fall D

Question # 16

An autonomous increase in the value of the domestic exchange rate.

Increases output net exports and the interest rate. A
Decreases output net exports and the interest rate B
Decreases output and net exports and increases the interest rate. C
Increase output and decreases net exports and the interest rate. D

Question # 17

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

The money supply increases A
The money supply decreases B
The money supply is unaffected C
We cannot tell what will happen to the money supply D

Question # 18

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 # 19

If the Bank of Pakistan wished to pursue a tight monetary policy is would.

Sell government securities on the open market. A
Reduce the minimum reserve asset ratio B
Buy government securities on the open market. C
Lower interest rates D

Question # 20

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

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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

An expansionary monetary policy

How do the banks gain from this corporate behavior.

When a government prints money to finance its expenditures it is likely to cause

The quantity of money demanded varies.

A monetary expansion is characterized by

Suppose you are a monetarist and believe in the the monetarist rule which the monetary authorities appear to be following if the economy beings to experience a slight increase in the inflation rte you would recommend that the monetary autorities.

If Federal reserve conducts open market sales, the money supply ___ shifting the LM curve to the_____

Which of the following causes M1 demand to decrease.

The budget deficit tends to decrease when

The purpose of financial intermediaries is.

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.

If young busness professionals in Pakistan suddenly decide that driving japan made cars is an important status symbol net exports will tend to _____________causing aggregate demand to.

You move some of your savings account balance into your checking account.

Which of the following events will lead to a decrease in the demand for money.

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

An autonomous increase in the value of the domestic exchange rate.

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

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

If the Bank of Pakistan wished to pursue a tight monetary policy is would.

The market price of bonds can fluctuate depending on

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

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If Federal reserve conducts open market sales, the money supply _ shifting the LM curve to the___

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