PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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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 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
2	An increase in autonomous consumer expenditure causes the equilibrium levelof 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
3	In the ISLM frame work a contractionary fiscal policy causes aggregate output to ___________ and the interest rate to	A. Increase ; increase B. Increase ; decrease C. decrees ; decrease D. decrease ;Increase
4	During periods of negative demand shocks deficit target reductions such as those mandated in the Gramm Rudman Hollings Act would tend to.	A. Stimulate the economy and increase empolyment. B. Result in additional recessionary declines in employment and income C. Stimulator defiance spending D. Have an automatic stabilizing impact upon the economy
5	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
6	A reduction in government spending causes the equilibrium level of aggregate output to ___________ at any given interest rate and shifts the ________ curve to the.	A. fall ;LM; right B. fall ;IS; Left C. fall ;LM; Left D. rise ;LM; Rifht
7	A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.	A. Raises ; LM; Right B. Lowers; IS ; left C. raises ; IS; right D. Lower ; LM; left
8	As the interest sensitivity of investment spending increase.	A. Monetary policy has a larger effect on output B. Fiscal policy has a larger effect on output C. The multiplier increases D. All of the above
9	You move some of your savings account balance into your checking account.	A. M2 falls and M1 rises B. M1 falls and M2 rises C. M1 and M2 are unchanged D. M1 rises and M2 remains unchanged
10	The situation in which the imports are greater than exports is termed as.	A. Trade surplus B. Trade deficit C. Budget surplus D. None

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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

The quantity theory of money allows monetarists to obtain a number of economics predictions by assuming a constant.

According to the supply side model a reduction in the tax rate.

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

The situation in which the imports are greater than exports is termed as.

A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______

The function of money do not include.

Which of the following causes M1 demand to decrease.

using money as a medium of exchange.

The opportunity cost of holding currency decrease when

Increasing the government budget deficit.

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

A decline in the money supply shifts the LM curve to the left causing the interest rate to ________ and output to___

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

An increase in the quantity of money supplied shifts the money supply curve to the_______ and the equilibrium interest rate

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

The opportunity cost of holding currency decreases when.

As the required reserve ratio is decreased the money multiplier.

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

Which of the following persons would be considered unemployed.

Why do people keep currency in their pockets when bank deposits pay interest.

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

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Set 12

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Topic Test

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

PPSC Economics Chapter 4 Important MCQ's

Test Questions

Share your comments & questions here

A shift in tastes toward Pakistan goods net exports and causes the quantity of aggregate output demanded to

A decline in the money supply shifts the LM curve to the left causing the interest rate to ______ and output to_

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