PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	A major advantage of monetary over fiscal policy is that monetary policty.	A. Can be put into effect more quickly B. Affects all sectors of the economy equally C. Authorities are quicker to see the need for policy D. Has a more direct and predictable impact on spending.
2	a contractionary monetary policy	A. Reduces interest rtes B. Reduces real output C. shifts the LM curve to the right D. All of the above
3	Which policies are expenditure changing policies.	A. Currency devaluation and revaluation B. Import quotas and tariffs C. Monetary and fiscal policy D. Wage and price controls
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 decrease in fully autonomous investment other things equal shifts the ______ curve to the	A. IS ; right B. IS ; Left C. LM ; Left D. LM ; right
6	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
7	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
8	Employment tends to _______ whwn aggregate output.	A. rise, falls B. rise ; rises C. falls; rises D. Not change ; falls
9	A major advantage of monetary over fiscal policy is that monetary policy	A. Can be put into effect more quickly B. Affects all sectors of the economy equally C. Authorities are quicker to see the need for policy D. Has a more direct and predictable impact on spending.
10	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.

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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 main source of interest profits for banks is.

Which of the following is not an important variable in growth accounting calculations.

Increasing the government budget deficit.

You know that all taxes are distortionary under what conditions will this knowledge lead you to appose the imposition of every single tax in the economy.

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

If the State bank of Pakistan wished to pursue a light monetary policy it would.

Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a ____ shift of the _____ curve.

Credit constitutes.

Believers in the monetarist rule assert that

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

In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to rise and the IS curve to shift to the

When there is no change in central banking holding of international reserve balances a country's

A decrease iin money demand other thing equal shifts the _____ curve to the

What major advantage of monetary policy over fiscal policy does this clipping underline.

using money as a medium of exchange.

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

An increase in spending those results from expansionary _______ policy cause the interest rate to.

The rate of which central bank lends to commercial banks is known as

A decrease in the quantity of money supplied shifts the money supply curve to the _____ and the LM curve to the

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

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

Test Questions

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Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a shift of the _ curve.