PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	"Some economists criticized the central bank for not moving in the face of the waning recovery One who prefers anonymity stated the failure to move today leaves us with low inflation a weak economy and climbing jobless claims these are classic signs of an impending downturn The fed fiddles while the economy burns This economist would want to see.	A. A higher interests rate B. A higher reserve requirement C. a decrease in the money supply D. An increase in the money supply
2	If the nominal money supply doubles while real money demand is unchanged what happens to the price level.	A. The price level increases by a factor of four B. The price level doubles C. The price level is unchanged D. The price level falls by one half.
3	An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _______ relative to foreign goods and results in a ______ in net exports.	A. Cheaper ; decline B. Cheaper ; rise C. dearer ; decline D. dearer ; rise
4	In the case of an expansionary ___ policy the interest rate rise while in the case of an expansionary _______ policy the interest rate falls.	A. monetary ; monetary B. monetary ; fiscal C. fiscal ; monetary D. fiscal ; fiscal
5	What is the significance of underestimating transactions money.	A. Monetary policy will be over simulating the economy B. Monetary policy will be putting a drag on the economy C. there is a need for money that the central bank should be meating. D. The economy has too much money and there frore not enough spending.
6	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	A. up ; right B. up ; left C. down ;left D. down ; right
7	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	A. up ; right B. up ; left C. down ;left D. down ; right
8	The investment demand curve shows the relationship between the levels of.	A. Investment and consumption B. Consumption and Interest rate C. Investment and interest rate D. None
9	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.	A. If you live in a 1st best world. B. If you live in a 2nd best world C. If the tax rates on some of the items are prohibitively high D. Either of the above
10	If the original money supply is MSo and the original demand for money is MDo then	A. The equilibrium interest rate and savings are 5% and 50 B. The money supply is 200 and equilibrium income is 500 C. The equilibrium interest rate and income are 5% and 600 D. The speculative demand is 25

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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

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

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

Short run contractionary Fiscal policy would result in.

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

What is the significance of underestimating transactions money.

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

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.

An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _______ relative to foreign goods and results in a ______ in net exports.

Weighted monetary aggregates

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

The board pumps money out of the economy by

At any given level of the interest rate expectations are likely to be___________ optimistic and planned investment is likely to be ______ when _________ is growing rapidly than when it is growing slowly or falling.

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

Which of the following would qualify as an aggregate supply shock.

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

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

The main role of the Federal Reserve is to

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 Political problem with discretionary fiscal policy is the.

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

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Set 12

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

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

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.

An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _ relative to foreign goods and results in a in net exports.

At any given level of the interest rate expectations are likely to be_ optimistic and planned investment is likely to be when _ is growing rapidly than when it is growing slowly or falling.