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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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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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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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	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
2	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
3	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
4	A decrease in autonomous consumer expenditure causes the equilibrium level of 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
5	A decline in the money__________ shifts the LM curve to the ____ causing the interest rate to rise and output to fall.	A. Demand ; right B. demand ; left C. supply ; right D. supply ; left
6	In the case of an expansionary ___ policy the interest rate rise while in the case of an expansionary _______ policy the interest rate falls.	A. monetary ; monetary B. monetary ; fiscal C. fiscal ; monetary D. fiscal ; fiscal
7	An increase in the money supply shifts the LM curve to the right causing the interest rate to __________ and output to.	A. rise ; rise B. rise ; fall C. fall ; rise D. fall ; fall
8	In the money market a condition of excess demand for money can be eliminated by a __________ in aggregate output or a ____ in the interest rate both of which reduce the quantity of money demanded.	A. rise ; rise B. rise; fall C. fall ; rise D. fall ; fall
9	A monetary action consistent with the central bank selling bonds in the open market would be.	A. An increase in the reserve ratio B. A reduction in the discount rate of interest C. An increase in government spending. D. a reduction in excise taxes
10	Money's primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization This function of money is called.	A. Store of value B. Medium of exchange C. Standard of deferred payment D. Unit of account

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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

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.

An expansionary monetary policy

A decrease in fully autonomous investment other things equal shifts the ______ curve to the

The investment demand curve shows the relationship between the levels of.

How do the banks gain from this corporate behavior.

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.

What technical terminology do economists use to refer to how much the money will multiply as this process unfolds.

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

A major advantage of monetary over fiscal policy is that monetary policy

Why would corporations want to achieve zero balances in their checking accounts.

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

The implementation lag for monetary policy is generally

The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.

In the 1930s, when Keynes was alive a expansionary fiscal policy taking everything else constant would have led to.

A good that is used as a medium of exchange as well as being a consumption good is called.

Which policies are expenditure changing policies.

To move from point E to point E1 is consistent with.

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.

Which of the following events will lead to a decrease in the demand for money.

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

PPSC Economics Chapter 4 Important MCQ's

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