PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____	A. A movement along the AS curve cost push inflation B. A leftward shift int he AS curve demand pull inflation. C. A right ward shift in the AS Curve cost push inflation D. a left ward shift in the AS curve cost push inflation
2	An example of discretionary fiscal policy would be.	A. The operation of the welfare sate B. The operation of the processive federal income tax C. A tax cut adopted to stimulate consumption D. An interest rate out in plummeted to stimulate consumption
3	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
4	An expansionary monetary policy	A. Reduces interest rates B. Increases real output C. Shifts the LM curve to the right D. All of the above
5	In the ISLM framework the decreasing investment spending believed by Keynes to be the cause of the Great Depression would be illustrated by a shift of the ____ curve to the.	A. IS ;right B. IS ;Left C. LM ; Left D. LM ; Right
6	Despite an expansionary monetary policy an economy experiences a recession the recession could occur in spite of the right ward shift of the LM curve if	A. The IS curve shifts left ward B. The IS curve shifts right ward C. The money supply increase D. Taxes are cut
7	By financial crowding our economists mean	A. What the government borrows cannot be used for private investment B. Government borrowing drives up interest rates. C. Bank of England controls on commercial bank lending D. Credit rationing
8	Which of the following persons would be considered unemployed.	A. a house wife B. A person who worked more than 20 hours in a family owned business C. A 15 years old looking for summer employment D. A recent college graduate looking for her fist job
9	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. Fiscal drag B. The Laffer curve C. Bracket creep D. Debt burden
10	A bank has excess liquidity reserves to lend but is unable to find a willing borrower these will_______ the size of the money multiplier.	A. Reduce B. Increase C. Have no effect on D. Double

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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

The economic logic behind granting central bank's independence from governmental the conduct of monetary policy is.

Factors that cause the IS curve to shift include.

In the ISLM framework the decreasing investment spending believed by Keynes to be the cause of the Great Depression would be illustrated by a shift of the ____ curve to the.

A 15% VAT is a.

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

a contractionary monetary policy

A shift in tastes toward Pakistan goods ________ net exports and causes the IS curve to shift to the.

A Political problem with discretionary fiscal policy is the.

An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____

Monetary policy is concerned with influencing.

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

If firms paying employees monthly began paying them weakly then the demand for money would.

The use of money is more efficient than barter because the introduction of money

If the central Bank wished to Tighten money is would.

The function of money do not include.

Why do people keep currency in their pockets when bank deposits pay interest.

"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.

An autonomous rise in the value of the Rupee makes Pakistan goods _____ expensive relative to foresight goods which ______ net exports

Keynes suggested that ________ income households consume a ____ proportion of their income than ____ income households.

As the required reserve ratio is decreased the money multiplier.

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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

An increase in oil prices, such as the oil shocks in the 70 s, lead to ___ there by causing _

An autonomous rise in the value of the Rupee makes Pakistan goods _ expensive relative to foresight goods which __ net exports

Keynes suggested that ____ income households consume a proportion of their income than income households.