PPSC Economics Topic 4 MCQS Test Preparation

Punjab Public Service Commission, PPSC takes the competitive exam to offer the deserving candidates suitable positions in several governmental organizations. Candidates who are willing to apply for the coming PPSC examination session with the subject of Economics are advised to start their preparation as soon as possible. The reason behind this endorsement is that candidates with exceptional results secure suitable positions and the exceptional result is a result of exceptional preparation.

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

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PPSC Economics Topic 4 Monetary & Fiscal Policy

00:00
Question # 1

An item designed as money that is intrinsically worthless could the.

Question # 2

There are _______ major instrument of monetary policy.

Question # 3

using money as a medium of exchange.

Question # 4

a contractionary monetary policy

Question # 5

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

Question # 6

An increase in money _______ shifts the LM curve to the _____ causing the interest rate to fall and output to rise

Question # 7

As the interest sensitivity of money demand increases

Question # 8

A checking deposit held at a commercial bank is considered ______ of that bank.

Question # 9

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

Question # 10

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

Question # 11

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

Question # 12

If the central Bank wished to Tighten money is would.

Question # 13

Per Capita income is obtained by dividing National income by

Question # 14

Money is

Question # 15

If the Federal reserve conducts open market __ the money supply __ shifting LM curve to the left.

Question # 16

The function of money do not include.

Question # 17

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.

Question # 18

A shift in tastes toward foreign goods ______ net exports and causes the IS curve to shift to the

Question # 19

In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.

Question # 20

An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the

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PPSC Economics Chapter 4 Important MCQ's

Sr.# Question Answer
1 "The problem with monetarism is that its advocates have seen it as infallible over short periods of time and wish it to be rigid in its application over all periods of time "The advocates of monetarism wish it to the rigid in its application over all periods of time to.
A. Weaken fiscal policy
B. Avoid monetary policy errors
C. Strengthen the impact of monetary policy
D. Ensure the independence of the central bank
2 Following the work of _____________ in the 1960s, and the controversy associated with these views in the 1970s, there was a revival of interest by economists and government in monetary policy.
A. Milton Friedman
B. Ronald Reagan
C. Margaret Thatcher
D. John Maynard Keynes
3 Under system fixed exchange rates which of the following policies promotes internal balance for a nation.
A. Fiscal policy
B. Monetary policy
C. Both fiscal policy and monetary policy
D. Neither fiscal policy nor monetary policy
4 In the Keynesian cross diagram a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to ______
A. up ; rise
B. up ; fall
C. down ;rise
D. down ; fall
5 If young busness professionals in Pakistan suddenly decide that driving japan made cars is an important status symbol net exports will tend to _____________causing aggregate demand to.
A. fall ; fall
B. fall ; rise
C. rise ; fall
D. rise ; rise
6 "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.
A. Income growth
B. Unemployment
C. Money growth
D. Taxes
7 Disposable income is obtained by subtracting ________ taxes from personal income
A. Indirect taxes
B. Direct taxes
C. Subsidies
D. None
8 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.
A. up ; left
B. up ; right
C. down ; left
D. down ; right
9 If the Bank of Pakistan wished to pursue a tight monetary policy is would.
A. Sell government securities on the open market.
B. Reduce the minimum reserve asset ratio
C. Buy government securities on the open market.
D. Lower interest rates
10 Which of the following is not an important variable in growth accounting calculations.
A. Productivity growth
B. Money supply growth
C. Labor growth
D. Capital growth

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