Punjab Public Service Commission, PPSC takes the competitive exam to offer the deserving candidates suitable positions in several governmental organizations. Candidates who are willing to apply for the coming PPSC examination session with the subject of Economics are advised to start their preparation as soon as possible. The reason behind this endorsement is that candidates with exceptional results secure suitable positions and the exceptional result is a result of exceptional preparation.
MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy
Try The MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy
According to classical models, the level of employment is determined primarily by
Question # 2
If the central Bank wished to Tighten money is would.
Question # 3
Those who favor setting the target rate of inflation at about 3% believe.
Question # 4
A decrease iin money demand other thing equal shifts the _____ curve to the
Question # 5
The relation between M2 and inflation is tighter than the relation between M1 and inflation because.
Question # 6
In the ISLM framework an expansionary monetary policy causes aggregate output to _____________ and the interest rate to
Question # 7
If the demand for money increase relative to the supply of money
Question # 8
What is the significance of underestimating transactions money.
Question # 9
The situation in which the imports are greater than exports is termed as.
Question # 10
Consider the five panels of the figure on the previous page in which panel would the simultaneous imposition of restrictive monetary policy and expansionary fiscal policy cause the largest increase in interest rates.
Question # 11
Disposable income is obtained by subtracting ________ taxes from personal income
Question # 12
What technical terminology do economists use to refer to how much the money will multiply as this process unfolds.
Question # 13
The quantity of money demanded varies.
Question # 14
"Money deposited for a term is not left in bank vaults but is loaned out by the banks This means that is dollar on deposit can flow back into the banking system one or more times and that dollar can expand the money supply What cnterminlogy do economists use to refer to the proses described in this clip.
Question # 15
The money multiple tells us teh ultimate increase in.
Question # 16
A change in the money supply has a greater effect upon equilibrium income.
Question # 17
In the ISLM frame work a contractionary fiscal policy causes aggregate output to ___________ and the interest rate to
Question # 18
A business cycle refers to.
Question # 19
The purpose of financial intermediaries is.
Question # 20
The economic logic behind granting central bank's independence from governmental the conduct of monetary policy is.
Top Scorers Of PPSC Economics Topic 4 Monetary & Fiscal Policy MCQ`s Test
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Shiza Amir25 - May - 2022
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khurram shazzz02 - Mar - 2022
04 Min 47 Sec
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Shahida 01 - Sep - 2021
06 Min 25 Sec
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Ayesha siddiqa02 - Jul - 2021
19 Min 10 Sec
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Tayyeba 29 - Jun - 2021
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Funny world with amazing facts22 - Apr - 2022
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sidra Naeem22 - May - 2022
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Abdul Qayyum25 - May - 2024
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Hassan Mehmood03 - Apr - 2022
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Shama Suleman21 - May - 2022
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Amjad Ali07 - Jun - 2023
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Shad Ali Shah27 - Jul - 2024
15 Min 17 Sec
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DJ DJ12 - Aug - 2022
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zaheer hussain18 - Jan - 2024
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Mahnoor NaSir24 - May - 2022
07 Min 27 Sec
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PPSC
Economics
Chapter 4
Important MCQ's
Sr.#
Question
Answer
1
The main source of interest profits for banks is.
A. Checking account fees
B. Loans
C. Government securities
D. Savigng accounts
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
Short run contractionary Fiscal policy would result in.
A. Aggregate demand moving to the right
B. Aggregate supply moving to the right
C. Aggregate demand moving to the left
D. Aggregate supply moving to the left
4
Employment tends to _______ whwn aggregate output.
A. rise, falls
B. rise ; rises
C. falls; rises
D. Not change ; falls
5
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.
A. Increase G by Rs.1,000
B. Decrease G by Rs.250
C. Increase G by less than Rs.100
D. Decrease G by more than Rs.250 but less than Rs.1000
6
Intermediate goods are meant for
A. Direct use by the consumers
B. Further processing
C. The term do not exist
D. None
7
If young busness professionals in Pakistan suddenly decide that driving japan made cars is an important status symbol net exports will tend to _____________causing aggregate demand to.
A. fall ; fall
B. fall ; rise
C. rise ; fall
D. rise ; rise
8
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
9
Believers in the monetarist rule assert that
A. Lags are long and variable
B. the economy cna be stabilized by automatic mechanisms
C. The central bank should keep the money supply growth constant
D. All of the above
10
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.
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