PPSC Economics Topic 4 MCQS Test Preparation

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

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PPSC Economics Topic 4 Monetary & Fiscal Policy

00:00
Question # 1

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

Question # 2

An increase in money demand other thing equal shifts the ____ curve to the___

Question # 3

In the money market a condition of excess demand for money can be eliminated by a __________ in aggregate output or a ____ in the interest rate both of which reduce the quantity of money demanded.

Question # 4

Which of the following causes M1 demand is decrease.

Question # 5

The IS curve shifts to the left when

Question # 6

The situation in which the imports are greater than exports is termed as.

Question # 7

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

Question # 8

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

Question # 9

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

Question # 10

The quantity of money demanded varies

Question # 11

The ____ lag for fiscal policy is generally _____ than it is for monetary policy.

Question # 12

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

Question # 13

An increase in spending those results from expansionary _______ policy cause the interest rate to.

Question # 14

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

Question # 15

Automatic stabilizers

Question # 16

If the central bank prints more 10 billion and spends them then as a direct result of this action.

Question # 17

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 _______

Question # 18

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

Question # 19

A shift in tastes toward foreign goods ______ net exports and causes the IS curve to shift to the

Question # 20

If the Bank of Pakistan wished to pursue an expansionary monetary policy it would.

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PPSC Economics Chapter 4 Important MCQ's

Sr.# Question Answer
1 When your grandmother keeps her savings hidden under her mattress she is using money as.
A. a standard of deferred panyment
B. A comfortable thing for sleeping
C. A medium of exchange
D. A store of value
2 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.
A. rise ; rise
B. rise ; fall
C. fall ; rise
D. fall ; fall
3 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
4 A business cycle refers to.
A. Fluctuations in the general price level
B. changes in the long term growth pattern of the CPI
C. The ups and downs of real GDP
D. Fluctuations in the level of corporate.
5 During periods of negative demand shocks deficit target reductions such as those mandated in the Gramm Rudman Hollings Act would tend to.
A. Stimulate the economy and increase empolyment.
B. Result in additional recessionary declines in employment and income
C. Stimulator defiance spending
D. Have an automatic stabilizing impact upon the economy
6 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
7 Large difference is inflation rates among countries are almost always the result of large difference in.
A. Productivity
B. Real income growth
C. The growth rates of real money demand
D. The growth rates of nominal money supplies
8 What major advantage of monetary policy over fiscal policy does this clipping underline.
A. Monetary policy is more effective
B. Monetary policy is lss discriminatory
C. Monetary policy can influence interest rates
D. Monetary policy can be undertaken more quickly
9 Those who favor setting the target rate of inflation at about 3% believe.
A. The cost of moderate inflation can be minimized by indexing the tax system and bonds
B. that the cost of going to 0% is very low
C. That moderate inflation increases money illusion
D. Believe that moderate inflation aggravates the time inconsistency problem
10 An autonomous rise in the value of the Rupee makes Pakistan goods _____ expensive relative to foresight goods which ______ net exports
A. Less ; decreases
B. Less ; increases
C. More ; decreases
D. more ; increases

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