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 aggregate demand curve is downward sloping because a higher price level.	A. Makes people wealthier and so they spend more B. Causes higher wages and so people spend more C. Cuts the real value of income and so people spend less D. Decreases the real supply of money decreasing spending.
2	The purpose of fiscal policy is to	A. Alter the direction of the economy B. Change people's attitudes toward governemnt C. Educate people as to the importance of economics D. Offer insight into the way thing work
3	A checking deposit held at a commercial bank is considered ______ of that bank.	A. An asset B. Net worth C. a liability D. Capital
4	A decrease iin money demand other thing equal shifts the _____ curve to the	A. IS ; right B. Is ; Left C. LM ; Left D. LM ; Rfight
5	Which of the following causes M1 demand is decrease.	A. A fall in the tax rate B. An increase in income C. A fall in the interest rate D. An increase in the use of credit cards
6	The equilibrium level of income is.	A. Rs. 360 B. Rs.600 C. Rs.440 D. Rs.500
7	When there is no change in central banking holding of international reserve balances a country's	A. Trae balance always equals 0 B. Current account balance always equals 0 C. Capital account balance always equals 0 D. Balance of payments always equal 0
8	In an economy experience high interest rates and high unemployment The ISLM frame work predicts that _________ policy has been too.	A. fiscal ; expansionary B. fiscal ; contractionary C. monetary ; expansionary D. monetary ; contractionary
9	Consider the five panels of the figure on the previous page in which of the five would monetary policy be the weakest.	A. Panel a B. Panel d C. Panel b D. Panel e
10	When the value of the Rupee rises Pakistan goods become _____ expensive relative to foreign goods which ___ exports.	A. more ; iincreases B. less ; increases C. more ; decreases D. more ; increases

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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

Money or paper currency serves at least _______ functions.

How do the banks gain from this corporate behavior.

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

Net taxes are.

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

A decrease in the legal reserve ratio from 25% to 20% will

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.

What happens to the money supply if the deficit is financed by selling bonds to the central bank.

The limit of an economy's total productive capacity at any given time is set by

If a perfectly competitive industry is in long run equilibrium all firms will

Identify the three motives of money demand.

Which of the following causes M1 demand is decrease.

Which of the following part of M1

Consider the five panels of the figure on the previous page in which of the five would monetary policy be the weakest.

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

The aggregate demand curve is downward sloping because a higher price level.

The near term effect of an unexpected sale of bonds by the central bank is.

The ratio of debt to GDP will be larger

A decline in planned investment spending unrelated to the interest rate focuses the equilibrium level of aggregate output to ________ and shifts the _ curve to the _______

The ____ lag for fiscal policy is generally _____ than it is for monetary policy.

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

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

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.

The lag for fiscal policy is generally _ than it is for monetary policy.