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	A sale of bonds by the central bank should cause.	A. A fall in the interest rate B. An increase in the money supply C. A decrease in the reserves of the commercial banks D. An increase in the commercial banks loans to the public
2	The quantity of money demanded varies.	A. Directly with both prices and output B. Inversely with both prices and output C. Directly with prices and inversely with output D. Inversely with prices and directly with output
3	Net taxes are.	A. Government expenditures minus government revenues. B. Taxes paid by firms and households to the government minus the transfer payments made to firms and household. C. Taxes paid by firms and household to the government plus transfer payments made to firms and hose holds. D. Taxes paid by firms and hose hold to the government minus the cost of collecting the taxes.
4	A good that is used as a medium of exchange as well as being a consumption good is called.	A. A barter money B. A commodity money C. A legal tender D. A debased money
5	Factor that cause the IS curve to shift include.	A. Change in autocoups consumer spending B. Change in taxes C. Change in government spending D. All of the above
6	A checking deposit held at a commercial bank is considered ______ of that bank.	A. An asset B. Net worth C. a liability D. Capital
7	A decrease in the quantity of money supplied shifts the money supply curve to the________ and the equilibrium interest rate	A. right ; fall B. right ; rises C. left ; falls D. left ; rises
8	What's the most common way for a central bank to reduce the money supply.	A. Collect higher taxes B. Sell bonds to the public C. Buy bounds from the government D. Buy bonds from the public
9	using money as a medium of exchange.	A. Requires people to math goods wanted with goods available. B. Reduces the range of feasible exchanges in the economy C. Inhibits economic transactions D. Reduces the need for barter in the economy.
10	An autonomous increase in money demand.	A. Shift the IS curve to the right B. Shifts the IS curve to the left C. Shift the LM curve to the right D. Shift the LM curve to the left

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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

According to Marshall the basis of consumer surplus is.

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

In the ISLM frame work a contractionary fiscal policy causes aggregate output to ___________ and the interest rate to

In an economy experience high interest rates and high unemployment The ISLM frame work predicts that _________ policy has been too.

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 _____the equilibrium level of aggregate output to fall and the IS curve to shift to the.

The opportunity cost of holding currency decreases when.

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the

An autonomous increase in money demand.

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

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

The quantity of money demanded varies

What's the most common way for a central bank to reduce the money supply.

"Transactions" money is money used as a

The board pumps money out of the economy by

Which school of economic thought suggested that one possible cause of inflation was a push from the cost side.

An autonomous increase in the value of the domestic exchange rate.

If the demand for money increase relative to the supply of money

Which of the following would qualify as an aggregate demand shocks.

A Political problem with discretionary fiscal policy is the.

The purpose of financial intermediaries is.

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 autonomous consumer expenditure causes the equilibrium levelof aggregate output to ___ at any given interest rate and shifts the curve to the