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	What is the significance of underestimating transactions money.	A. Monetary policy will be over simulating the economy B. Monetary policy will be putting a drag on the economy C. there is a need for money that the central bank should be meating. D. The economy has too much money and there frore not enough spending.
2	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. rise ; LM ;right B. rise ; IS ; right C. fall ; LM, Left D. rise ; IS ; Left
3	Large difference is inflation rates among countries are almost always the result of large difference in.	A. Productivity B. Real income growth C. The growth rates of real money demand D. The growth rates of nominal money supplies
4	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 _______	A. rise ; left B. rise ; right C. fall ; left D. fall ; right
5	When your grandmother keeps her savings hidden under her mattress she is using money as.	A. a standard of deferred panyment B. A comfortable thing for sleeping C. A medium of exchange D. A store of value
6	As a result of the increase in government expenditures disposable income increases by.	A. Rs.10 billion B. Rs.9 billion C. Rs.20 billion D. Rs.5 billion
7	The aggregate demand curve is downward sloping because a higher price level.	A. Makes people wealthier and so they spend more B. Causes higher wages and so people spend more C. Cuts the real value of income and so people spend less D. Decreases the real supply of money decreasing spending.
8	The ratio of debt to GDP will be larger	A. The lower the real interest rate B. The lower the growth rate of output C. The lower the in initial debt ratio D. The lower the ratio of the primary deficit to GDP
9	using money as a medium of exchange.	A. Requires people to math goods wanted with goods available. B. Reduces the range of feasible exchanges in the economy C. Inhibits economic transactions D. Reduces the need for barter in the economy.
10	If the Central Bank wanted to decrease the quantity of money held by the public it would.	A. Sell government securities B. Buy government securities C. Lower the legal reserve requirement D. Raise taxes

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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

Consider the five panels of the figure on the previous page in which of the five would monetary policy be the weakest.

The parable of Riding a Switchback suggests that stabilizing policy.

A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.

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.

"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.

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.

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

By controlling the monetary base economists mean

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.

In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift _____ the equilibrium level of aggregate output to fall, and the IS curve to shift to the.

You know that all taxes are distortionary under what conditions will this knowledge lead you to appose the imposition of every single tax in the economy.

"Far better for central bankers to get out of the fine tuning business instead they should d try to keep.

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

Which of the following would qualify as an aggregate demand shocks.

The quantity of money demanded increases with income Thus if income increases the opportunity cost of holding money demand and re establish equilibrium in the money market This relation is captured by.

using money as a medium of exchange.

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 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.

The government performs its redistribution function mainly through.

The market price of bonds can fluctuate depending on

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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

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.