PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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Shiza Amir 25 - May - 2022 02 Min 08 Sec 18/20
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khurram shazzz 02 - Mar - 2022 04 Min 47 Sec 18/20
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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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Ayesha siddiqa 02 - Jul - 2021 19 Min 10 Sec 17/20
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Tayyeba 29 - Jun - 2021 09 Min 28 Sec 16/20
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Funny world with amazing facts 22 - Apr - 2022 06 Min 10 Sec 15/20
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sidra Naeem 22 - May - 2022 13 Min 44 Sec 13/20
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Abdul Qayyum 25 - May - 2024 07 Min 53 Sec 12/20
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Hassan Mehmood 03 - Apr - 2022 08 Min 20 Sec 12/20
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Shama Suleman 21 - May - 2022 12 Min 21 Sec 12/20
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Amjad Ali 07 - Jun - 2023 12 Min 49 Sec 12/20
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Shad Ali Shah 27 - Jul - 2024 15 Min 17 Sec 12/20
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DJ DJ 12 - Aug - 2022 11 Min 02 Sec 11/20
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zaheer hussain 18 - Jan - 2024 14 Min 06 Sec 11/20
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Mahnoor NaSir 24 - May - 2022 07 Min 27 Sec 9/20

Sr.#	Question	Answer
1	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
2	An example of discretionary fiscal policy would be.	A. The operation of the welfare sate B. The operation of the processive federal income tax C. A tax cut adopted to stimulate consumption D. An interest rate out in plummeted to stimulate consumption
3	Factor that cause the IS curve to shift include.	A. Change in autocoups consumer spending B. Change in taxes C. Change in government spending D. All of the above
4	By controlling the monetary base economists mean	A. Controlling the money multiplier B. Restricting the amount of cash in circulation C. Not allowing commercial banks to issue notes and coins D. making banks keep a certain % of their assets as M0
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	Monetary policy can affect output.	A. this statement is always true B. This statements always false C. This statement is true only in the short run D. This statement is true only in the medium run and the long run
7	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
8	If the Federal reserve conducts open market __ the money supply __ shifting LM curve to the left.	A. Purchases ; decreases B. sales ; decreases C. purchases ; increases D. sales ; increases
9	The implementation lag for monetary policy is generally	A. Much longer than it is for fiscal policy B. Unrelated to central bank action C. The same as it is for fiscal policy D. Much shorter than it is for fiscal policy.
10	There are _______ major instrument of monetary policy.	A. Three B. Four C. Five D. None
11	As the required reserve ratio is decreased the money multiplier.	A. Could either increase or decrease B. Remains the same as long as banks hold no excess reserves C. Increase D. Decreases
12	The relation between M2 and inflation is tighter than the relation between M1 and inflation because.	A. M1 is larger than M2 B. The demand for M2 is more stable C. M1 includes more liquid assets the M2 D. None of the above answers is correct.
13	The purpose of fiscal policy is to	A. Alter the direction of the economy B. Change people's attitudes toward governemnt C. Educate people as to the importance of economics D. Offer insight into the way thing work
14	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
15	One of money's primary roles in the economy comes from the use of money to transfer purchasing power to the future This role of money is called.	A. store of value B. Unit of account C. Medium of exchange D. Standard of deferred payment
16	The central bank and the government are working against each other if as the government cuts taxes the central bank	A. Sells government bonds B. Lowers the discount rate C. Increase the money supply D. Decrease the legal reserve requirements
17	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.
18	Total utility of a commodity is measured by which price of that commodity.	A. Value in use. B. Value in exchange C. Both of above D. None of above
19	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.
20	Which of the following is not an important variable in growth accounting calculations.	A. Productivity growth B. Money supply growth C. Labor growth D. Capital growth

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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

Disposable income is obtained by subtracting ________ taxes from personal income

Fiscal policy refers to.

Fiscal policy refers to the manipulation of government income and expenditure to.

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

Factors that cause the IS curve to shift include.

A decrease in fully autonomous investment other things equal shifts the ______ curve to the

If firms paying employees monthly began paying them weakly then the demand for money would.

An item designed as money that is intrinsically worthless could the.

a contractionary monetary policy

The market price of bonds can fluctuate depending on

According to Marshall the basis of consumer surplus is.

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

Per Capita income is obtained by dividing National income by

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

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

When the central Bank ________ the money supply the LM curve shifts to the _______ interest rates ____________ and equilibrium aggregate output.

A rise in planned investment spending unrelated to the interest rate causes teh equilibrium level of aggregate output to __________ at shifts the _____ curve to the _______

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

The board pumps money out of the economy by

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

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

When the central Bank ____ the money supply the LM curve shifts to the _ interest rates __________ and equilibrium aggregate output.

A rise in planned investment spending unrelated to the interest rate causes teh equilibrium level of aggregate output to ________ at shifts the _ curve to the _____