PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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zaheer hussain 18 - Jan - 2024 14 Min 06 Sec 11/20
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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	A decrease iin money demand other thing equal shifts the _____ curve to the	A. IS ; right B. Is ; Left C. LM ; Left D. LM ; Rfight
2	During period of inflation	A. Those people who have fixed incomes benefit B. Every one's real income falls C. those people who enter long term wage agreements benefit D. Those people whose real income rises faster than the general price level benefit
3	According to the supply side model a reduction in the tax rate.	A. Could reduce the size of any budget deficit B. Would have no effect on output C. Would have no effect on consumption D. None of the above
4	A decrease in fully autonomous investment other things equal shifts the ______ curve to the	A. IS ; right B. IS ; Left C. LM ; Left D. LM ; right
5	Fiscal policy refers to.	A. The actions of the central bank in controlling the money supply B. The government's altitude to taxation C. The spending and taxing policies used by the government to influence the economy D. The governments regulation of financial intermediaries.
6	An increases in the value of the Rupee makes foreign goods cheaper relative to Pakistan goods, resulting in a _______ in net exports and a __ shift of the IS curve	A. fall ; leftward B. rise ; leftward C. fall ; rightward D. rise ; rightward
7	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
8	A business cycle refers to.	A. Fluctuations in the general price level B. changes in the long term growth pattern of the CPI C. The ups and downs of real GDP D. Fluctuations in the level of corporate.
9	Equilibrium in the money markets can be expressed by the equation i = 9k/h) Y -M/h. The slope of LM decrease when	A. k increases and h increase B. k increases and h decrease C. k decrease and h increase D. k decrease and h decrease
10	"The earlier predictions underestimated currency in circulation and treasury balances at the Fed, both of which drained reserves from the banking system" Lower reserves means.	A. Lower interest rates B. Lower money supply C. Lower unemployment D. Higher inflation

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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

How do the banks gain from this corporate behavior.

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.

Fiscal policy refers to the manipulation of government income and expenditure to.

A Political problem with discretionary fiscal policy is the.

What happens to the money supply if the deficit is financed by selling bonds to the general public.

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

If a perfectly competitive industry is in long run equilibrium all firms will

Under system fixed exchange rates which of the following policies promotes internal balance for a nation.

The ____ lag for fiscal policy is generally _____ than it is for monetary policy.

The equilibrium level of saving is.

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

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.

Identify the three motives of money demand.

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

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

Which of the followig does not shift the IS curve .

The central bank and the government are working against each other if as the government cuts taxes the central bank

The IS curve shifts to the left when

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

Total utility of a commodity is measured by which price of that commodity.

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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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The lag for fiscal policy is generally _ than it is for monetary policy.

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.