PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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Shiza Amir 25 - May - 2022 02 Min 08 Sec 18/20
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khurram shazzz 02 - Mar - 2022 04 Min 47 Sec 18/20
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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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Ayesha siddiqa 02 - Jul - 2021 19 Min 10 Sec 17/20
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Tayyeba 29 - Jun - 2021 09 Min 28 Sec 16/20
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Funny world with amazing facts 22 - Apr - 2022 06 Min 10 Sec 15/20
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sidra Naeem 22 - May - 2022 13 Min 44 Sec 13/20
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Hassan Mehmood 03 - Apr - 2022 08 Min 20 Sec 12/20
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Shama Suleman 21 - May - 2022 12 Min 21 Sec 12/20
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Amjad Ali 07 - Jun - 2023 12 Min 49 Sec 12/20
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Shad Ali Shah 27 - Jul - 2024 15 Min 17 Sec 12/20
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DJ DJ 12 - Aug - 2022 11 Min 02 Sec 11/20
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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	How do the banks gain from this corporate behavior.	A. More loans can be made B. Tax free profits can be made C. Interest rates can be increased D. By circumvent banking regulations
2	An increase in expected inflation is likely ot cause.	A. A decline in the demand for real balances B. an increase in the demand for real balances. C. No change i the demand for real balances D. No change in the demand for real balances only of the income elasticity of real money demand is zero.
3	Which of the following events will lead to a decrease in the demand for money.	A. An increase in the level of aggregate output. B. A decrease in the supply of money C. A decrease in the interest rate D. a decrease in the price level
4	Fiscal policy is purposeful movements in _____designed to direct an economy	A. Interest rate B. Legal structures C. Government regulations D. D Government spending and taxes
5	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
6	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.	A. Less ; higher ; output. B. more ; higher ; output C. less ; lower ; unplanned investment D. more ; lower ; unplanned investment
7	A decrease in the legal reserve ratio from 25% to 20% will	A. Result in light money B. Be contractionary C. Increases excess reserves and the potential money multiplier D. Decrease excess reserves and the potential money multiplier
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	Those who favor setting the target rate of inflation at about 3% believe.	A. The cost of moderate inflation can be minimized by indexing the tax system and bonds B. that the cost of going to 0% is very low C. That moderate inflation increases money illusion D. Believe that moderate inflation aggravates the time inconsistency problem
10	What happens to the money supply if the deficit is financed by selling bonds to the general public.	A. The money supply increaes B. The money supply decreases C. The money supply is unaffected D. We cannot tell what will happen to the money supply

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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 largest source of tax revenue for the federal government is.

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

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.

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.

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

A monetary expansion is characterized by

A monetary action consistent with the central bank selling bonds in the open market would be.

The relation between M2 and inflation is tighter than the relation between M1 and inflation because.

Under a fixed exchange rate system an expansionary fiscal policy leads to a

Disposable income is obtained by subtracting ________ taxes from personal income

Consider the five panels of the figure on the previous page in which panel would fiscal policy be the strongest.

An increase in the money supply shifts the LM curve to the right causing the interest rate to __________ and output to.

Which of the following part of M1

A reduction in government spending causes the equilibrium level of aggregate output to ___________ at any given interest rate and shifts the ________ curve to the.

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

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

In the Keynesian corss diagram, and cline 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.

An increase in money demand other thing equal shifts the ____ curve to the___

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.

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

Set 10

Set 11

Set 12

Set 13

Set 14

Topic Test

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

PPSC Economics Chapter 4 Important MCQ's

Test Questions

A reduction in government spending causes the equilibrium level of aggregate output to ___ at any given interest rate and shifts the curve to the.

An increase in money demand other thing equal shifts the __ curve to the_

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.