PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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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	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
2	An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the	A. rise ; LM ;right B. rise ; IS ; right C. fall ; LM, Left D. rise ; IS ; Left
3	Which of the following measures is the best measure of money as a medium of exchange.	A. M1 B. M2 C. M3 D. None of the above
4	A sale of bonds by the central bank should cause.	A. A fall in the interest rate B. An increase in the money supply C. A decrease in the reserves of the commercial banks D. An increase in the commercial banks loans to the public
5	According to the supply side model a reduction in the tax rate.	A. Could reduce the size of any budget deficit B. Would have no effect on output C. Would have no effect on consumption D. None of the above
6	An autonomous increase in the value of the domestic exchange rate.	A. Increases output net exports and the interest rate. B. Decreases output net exports and the interest rate C. Decreases output and net exports and increases the interest rate. D. Increase output and decreases net exports and the interest rate.
7	How do the banks gain from this corporate behavior.	A. More loans can be made B. Tax free profits can be made C. Interest rates can be increased D. By circumvent banking regulations
8	The money multiple tells us teh ultimate increase in.	A. The income level due to an increase in the money base B. The money supply due to an increase in the money base. C. The money supply due to an increase in the income level D. The income level due to an increase in the money supply
9	Following the work of _____________ in the 1960s, and the controversy associated with these views in the 1970s, there was a revival of interest by economists and government in monetary policy.	A. Milton Friedman B. Ronald Reagan C. Margaret Thatcher D. John Maynard Keynes
10	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

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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

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

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

You move some of your savings account balance into your checking account.

A monetary expansion is characterized by

What happens to the money supply if the deficit is financed by selling bonds to the central bank.

The central bank and the government are working against each other if as the government cuts taxes the central bank

Which of the following would qualify as an aggregate supply shock.

The market price of bonds can fluctuate depending on

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

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

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

The intersection of the IS and LM curves captures.

A decrease in the quantity of money supplied shifts the money supply curve to the _____ and the LM curve to the

An increase in expected inflation is likely ot cause.

The government performs its redistribution function mainly through.

The equilibrium level of income is.

The quantity of money demanded increases with income Thus if income increases the opportunity cost of holding money demand and re establish equilibrium in the money market This relation is captured by.

Which policies are expenditure changing policies.

Weighted monetary aggregates

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

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

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.