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	The Central Bank controls money and credit with the exception of.	A. Controlling the money base through open market operations B. Controlling reserve requirements C. Setting the discount rate of interest D. controlling the stock market
2	If the original money supply is MSo and the original demand for money is MDo then	A. The equilibrium interest rate and savings are 5% and 50 B. The money supply is 200 and equilibrium income is 500 C. The equilibrium interest rate and income are 5% and 600 D. The speculative demand is 25
3	A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.	A. Raises ; LM; Right B. Lowers; IS ; left C. raises ; IS; right D. Lower ; LM; left
4	Money is	A. An indicator of the scarcity of wants B. Anything that sellers accept i exchange for goods and services. C. A form of barter D. Anything that the government classifies as a trade commodity.
5	a contractionary monetary policy	A. Reduces interest rtes B. Reduces real output C. shifts the LM curve to the right D. All of the above
6	One of money's primary roles in the economy comes from the use of money to transfer purchasing power to the future This role of money is called.	A. store of value B. Unit of account C. Medium of exchange D. Standard of deferred payment
7	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
8	Commercial banks	A. Are financial intermediaries that offer demand deposits. B. Are owned by the Federal Reserve C. Are non profit banking institutions D. Are overseen by the Federal savings and loan insurance corporation.
9	How much of the Rs. 5 billion dollar increase in the government expenditures will be financed by bond sales.	A. Rs.3.5 billion B. Rs.1.5 billion C. Rs. 4.9 billion D. Rs.2.8 billion
10	Consider the five panels of the figure on the previous page in which panel would the simultaneous imposition of restrictive monetary policy and expansionary fiscal policy cause the largest increase in interest rates.	A. Panel a B. Panel b C. Panel c D. Panel d

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MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy

PPSC Economics Topic 4 Monetary & Fiscal Policy

According to the Laffer curve as tax rates increase tax revenues.

Per Capita income is obtained by dividing National income by

Which of the following persons would be considered unemployed.

The largest source of tax revenue for the federal government is.

The idea that the money supply should change to accommodate changes in aggregate demand is associated with the ideas of.

A decrease in the quantity of money supplied shifts the money supply curve to the _____ and the LM curve to the

The real money demand doubles while the nominal money supply is unchanged what happens to the price level.

If the Central Bank wanted to decrease the quantity of money held by the public it would.

Which of the following is not an important variable in growth accounting calculations.

The negative effect on the economy that occurs when average tax rates increases because taxpayers have moved into higher income brackets during an expansion is.

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

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

Fiscal policy refers to.

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _________ in net exports and a ________shifts of the IS curve.

In the Keynesian cross diagram a decline in autonomous consumer expenditure causes the aggregate demand function to shift down The equilibrium level of aggregate output to ___________ and the IS curve to shift to the

Weighted monetary aggregates

In the money market a condition of excess supply of money cna be eliminated by a _________ in aggregate output or a __ in the interest rate , both of which increase the quantity of money demanded.

Believers in the monetarist rule assert that

"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.

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

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Set 7

Set 8

Set 9

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Set 11

Set 12

Set 13

Set 14

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

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _ in net exports and a shifts of the IS curve.

In the money market a condition of excess supply of money cna be eliminated by a _______ in aggregate output or a in the interest rate , both of which increase the quantity of money demanded.