PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	Money or paper currency serves at least _______ functions.	A. Three B. Four C. Five D. Seven
2	An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the	A. Net exports LM right B. Net exports LM left C. Money demand IS right D. Money demand LM left
3	A 15% VAT is a.	A. Proportional income tax B. Fixed excise duty C. Ad valorem indirect tax D. None of the above
4	The parable of Riding a Switchback suggests that stabilizing policy.	A. Is not sufficiently stimulating or contra citing the economy at any time B. Is desirable C. Is effective D. Is stimulating or contracting the economy at the wrong times.
5	The negative effect on the economy that occurs when average tax rates increases because taxpayers have moved into higher income brackets during an expansion is.	A. Fiscal drag B. The Laffer curve C. Bracket creep D. Debt burden
6	The opportunity cost of holding currency decreases when.	A. Income decreases B. The interest rate on bonds decrease C. Buying newly issued government bonds directly from the central bank D. Buying newly issued government bonds directly to the central bank.
7	A bank has excess liquidity reserves to lend but is unable to find a willing borrower these will_______ the size of the money multiplier.	A. Reduce B. Increase C. Have no effect on D. Double
8	In the Keynesian cross diagram, a decline in autonomous consumer expenditure 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
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	Suppose a new law imposes a tax on all trades of bonds and stock What is the likely effect on money demand.	A. Money demand declines first then rises when inflation increases B. Money demand rises C. The overall effect is ambiguous D. Money demand declines

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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

Factor that cause the IS curve to shift include.

The quantity of money demanded varies.

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

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

Per Capita income is obtained by dividing National income by

Over time the wealth of society increases and payments technologies get more efficient What is the effect on money demand of these two changes.

A shift in tastes toward Pakistan goods ________ net exports and causes the IS curve to shift to the.

An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the

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

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

Which of the following part of M1

Actual equilibrium is Rs. 1,500 billion and full employment is Rs. 2,500 MPC = 0.75 taxes are zero , and prices are adjustable To eliminate the observed deflationary gap , the government should.

Short run contractionary Fiscal policy would result in.

An autonomous rise in the value of the Rupee makes Pakistan goods _____ expensive relative to foresight goods which ______ net exports

An increase in expected inflation is likely ot cause.

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _________ in net exports and a ________shifts of the IS curve.

Factors that cause the IS curve to shift include.

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

Money or paper currency serves at least _______ functions.

Fiscal policy refers to.

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

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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

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An autonomous rise in the value of the Rupee makes Pakistan goods _ expensive relative to foresight goods which __ net exports

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _ in net exports and a shifts of the IS curve.

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