PPSC Economics Ch 4 Monetary & Fiscal Policy

MCQ's Test For PPSC Economics Chapter 4 Monetary & Fiscal Policy

Try The MCQ's Test For PPSC Economics Chapter 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Monetary & Fiscal Policy

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Question # 1

A decrease in the quantity of money supplied shifts the money supply curve to the________ and the equilibrium interest rate

right ; fall A
right ; rises B
left ; falls C
left ; rises D

Question # 2

Commercial banks

Are financial intermediaries that offer demand deposits. A
Are owned by the Federal Reserve B
Are non profit banking institutions C
Are overseen by the Federal savings and loan insurance corporation. D

Question # 3

If the Federal reserve conducts open market the money supply shifting LM curve to the left.

Purchases ; decreases A
sales ; decreases B
purchases ; increases C
sales ; increases D

Question # 4

in the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift _the equilibrium level of aggregate output to __l and the IS curve Curve to shift to the.

rise ; left A
rise ; right B
fall ; left C
fall ; right D

Question # 5

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 ________

rise ; LM ;right A
rise ; IS ; right B
Fall ; LM ; left C
rise ;IS; Left D

Question # 6

A decline in the money______ shifts the LM curve to the causing the interest rate to rise and output to fall.

Demand ; right A
demand ; left B
supply ; right C
supply ; left D

Question # 7

Factor that cause the IS curve to shift include.

Change in autocoups consumer spending A
Change in taxes B
Change in government spending C
All of the above D

Question # 8

Aggregate output and the interest rate are ____ related to government spending and are _ related to taxes.

Positively ; positively A
Positively ; negatively B
negatively ; positively C
negatively ; negatively D

Question # 9

According to Marshall the basis of consumer surplus is.

Law of diminishing marginal utility. A
Law of equal marginal utility B
Law of proportions C
All of the above D

Question # 10

"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.

Income growth A
Unemployment B
Money growth C
Taxes D

Question # 11

In economics money refers to

Income A
Wealth B
Assets use and accepted an payment C
Currency D

Question # 12

When considering any kind of economics indicator, prices are important because.

They reflect the value of goods and services. A
They are established by the government to control population 's needs B
They categorize goods and services by their weight C
Historically they have proved to the good predictors of futures unemployment. D

Question # 13

Money and income are.

Mirror image of each other A
Two quite different concepts B
Both measured as a per annum flow C
Two ways of looking at the same thing. D

Question # 14

Suppose a new law imposes a tax on all trades of bonds and stock What is the likely effect on money demand.

Money demand declines first then rises when inflation increases A
Money demand rises B
The overall effect is ambiguous C
Money demand declines D

Question # 15

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

The price level increase by a factor of four A
The price level doubles B
The price level is unchanged C
The price level falls by one half. D

Question # 16

The budget deficit tends to decrease when

GDP increases A
GDP decreases rapidly B
GDP remains unchanged C
GDP decreases slightly D

Question # 17

A tax cut disposable income ___ consumption expenditure and shifts the IS curve to the.

Increases ; increases ; right A
Increases ; decreases ; left B
decreases ; increases ; left C
decreases ; decreases ; right D

Question # 18

An increase in the money supply other thighs equal shifts the ______ curve to the

IS ; right A
Is ; left B
LM ; Left C
LM ; right D

Question # 19

Fiscal policy refers to.

The actions of the central bank in controlling the money supply A
The government's altitude to taxation B
The spending and taxing policies used by the government to influence the economy C
The governments regulation of financial intermediaries. D

Question # 20

Believers in the monetarist rule assert that

Lags are long and variable A
the economy cna be stabilized by automatic mechanisms B
The central bank should keep the money supply growth constant C
All of the above D

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PPSC Economics Chapter 4 MCQS Test Preparation

MCQ's Test For PPSC Economics Chapter 4 Monetary & Fiscal Policy

PPSC Economics Chapter 4 Monetary & Fiscal Policy

A decrease in the quantity of money supplied shifts the money supply curve to the________ and the equilibrium interest rate

Commercial banks

If the Federal reserve conducts open market __ the money supply __ shifting LM curve to the left.

in the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift _____the equilibrium level of aggregate output to ______l and the IS curve Curve to shift to the.

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 decline in the money__________ shifts the LM curve to the ____ causing the interest rate to rise and output to fall.

Factor that cause the IS curve to shift include.

Aggregate output and the interest rate are ______ related to government spending and are ___ related to taxes.

According to Marshall the basis of consumer surplus is.

"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.

In economics money refers to

When considering any kind of economics indicator, prices are important because.

Money and income are.

Suppose a new law imposes a tax on all trades of bonds and stock What is the likely effect on money demand.

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

The budget deficit tends to decrease when

A tax cut __ disposable income _____ consumption expenditure and shifts the IS curve to the.

An increase in the money supply other thighs equal shifts the ______ curve to the

Fiscal policy refers to.

Believers in the monetarist rule assert that

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

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Set 2

Set 3

Set 4

Set 5

Set 6

Set 7

Set 8

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Set 12

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