PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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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

PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	A decrease iin money demand other thing equal shifts the _____ curve to the	A. IS ; right B. Is ; Left C. LM ; Left D. LM ; Rfight
2	There are _______ major instrument of monetary policy.	A. Three B. Four C. Five D. None
3	The quantity of money demanded varies	A. Directly with both prices and output B. Inversely with both prices and output C. Directly with prices and inversely with output D. Inversely with prices and directly with output
4	Which of the following events will lead to a decrease in the demand for money.	A. An increase in the level of aggregate output. B. A decrease in the supply of money C. A decrease in the interest rate D. a decrease in the price level
5	Which of the followig does not shift the IS curve .	A. An increases in autonomous consumption B. An increase in government spending. C. A decline in government spending D. A fall in theinterest rate
6	Which policies are expenditure changing policies.	A. Currency devaluation and revaluation B. Import quotas and tariffs C. Monetary and fiscal policy D. Wage and price controls
7	Which of the following would qualify as an aggregate supply shock.	A. An unexpected increase in oil prices B. Seasonally expected increase in oil prices C. An unexpected reduction in consumer confidence D. an anticipated tax cut
8	When a government prints money to finance its expenditures it is likely to cause	A. Unemployment B. Inflation C. Deflation D. Reductions in the use of barter
9	If there is a financial panic and increased uncertainty about the return in the stock market and bond market what is the likely effect on money demand.	A. Money demand declines first then rises when inflation increases B. Money demand rises C. The overall effect its ambiguous D. Money demand declines
10	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

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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

Monetary policy is concerned with influencing.

A monetary expansion is characterized by

An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the

The relation between M2 and inflation is tighter than the relation between M1 and inflation because.

Which of the followig does not shift the IS curve .

The IMF is an agency charged with providing.

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

In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.

"Although he didn't say so, this may ultimately compet the central bank to resort increasingly to managing the money supply by managing banks excess cash reserves the stuff from which the banks create loans". How would the central bank manages these excess reserves.

A tax increase __________ disposable income ____ consumption expenditure and shifts the IS curve to the.

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

A major advantage of monetary over fiscal policy is that monetary policty.

Money's primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization This function of money is called.

Intermediate goods are meant for

A bonds becomes a riskier asset the demand for money_______ and all else constant, the equilibrium interest rate

A sale of bonds by the central bank should cause.

Why would corporations want to achieve zero balances in their checking accounts.

In the ISLM frame work a contractionary fiscal policy causes aggregate output to ___________ and the interest rate to

During periods of negative demand shocks deficit target reductions such as those mandated in the Gramm Rudman Hollings Act would tend to.

The investment demand curve shows the relationship between the levels of.

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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 __ note causes by a change in the price level aggregate output of the interest shifts the _ curve to the

A tax increase ______ disposable income consumption expenditure and shifts the IS curve to the.