PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	The function of money do not include.	A. an exchange of purchasing power B. A unit of account C. A medium of exchange D. A store of value
2	Equilibrium in the money markets can be expressed by the equation i = 9k/h) Y -M/h. The slope of LM decrease when	A. k increases and h increase B. k increases and h decrease C. k decrease and h increase D. k decrease and h decrease
3	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.	A. rise ; rise B. rise ; fall C. fall ; rise D. fall ; fall
4	In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift _____ the equilibrium level of aggregate output to fall, and the IS curve to shift to the.	A. up ; left B. up ; right C. down ; left D. down ; right
5	An increase in money _______ shifts the LM curve to the _____ causing the interest rate to fall and output to rise	A. demand ; right B. demand ; left C. supply ; right D. supply ; left
6	In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift down the equilibrium level of aggregate output to___________ and the IS curve to shift to the.	A. up ; left B. up ; right C. down ; left D. down ; right
7	How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.	A. Rs.1 billion B. Rs.2 billion C. Rs.0.9 billion D. Rs.0.5 billion
8	The IS curve shifts to the left when	A. Taxes increase B. Government spending increase C. The money supply increases D. All of the above occur
9	Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a ____ shift of the _____ curve.	A. Left ward ; LM B. Right ; LM C. Left ward ; IS D. Left ward ; AD
10	Suppose velocity is constant and the real income elasticity of the demand for money is less than one then estimating inflation as money growth rate minus real growth rate.	A. Overestimates inflation B. Underestimates inflation C. Is an erratic estimate of inflation D. Remain an accurate estimate of inflation.

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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 IS curve shifts to the left when

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

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

Believers in the monetarist rule assert that

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

In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up the equilibrium level of aggregate output to _______ and the IS curve to shift to the _______

When the value of the Rupee rises Pakistan goods become _____ expensive relative to foreign goods which ___ exports.

Keynes suggested that ________ income households consume a ____ proportion of their income than ____ income households.

The main source of interest profits for banks is.

Which of the following measures is the best measure of money as a medium of exchange.

According to the Laffer curve as tax rates increase tax revenues.

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

An increase in the rate of inflation which is not accompanied by any change in the volume of consumer goods sold will automatically increase the.

A monetary expansion is characterized by

Weighted monetary aggregates

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

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.

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

Which policies are expenditure changing policies.

Increasing the government budget deficit.

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

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Set 7

Set 8

Set 9

Set 10

Set 11

Set 12

Set 13

Set 14

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

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

In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up the equilibrium level of aggregate output to _ and the IS curve to shift to the _

When the value of the Rupee rises Pakistan goods become ___ expensive relative to foreign goods which _ exports.

Keynes suggested that ____ income households consume a proportion of their income than income households.

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.