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	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
2	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
3	If a perfectly competitive industry is in long run equilibrium all firms will	A. Have a marginal costs B. Have identical supply curves C. Operate at the point where marginal cost just covers all variable costs D. Have equal fixed costs
4	The real money demand doubles while the nominal money supply is unchanged what happens to the price level.	A. The price level increase by a factor of four B. The price level doubles C. The price level is unchanged D. The price level falls by one half.
5	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
6	A major advantage of monetary over fiscal policy is that monetary policty.	A. Can be put into effect more quickly B. Affects all sectors of the economy equally C. Authorities are quicker to see the need for policy D. Has a more direct and predictable impact on spending.
7	An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the	A. Net exports LM right B. Net exports LM left C. Money demand IS right D. Money demand LM left
8	By financial crowding our economists mean	A. What the government borrows cannot be used for private investment B. Government borrowing drives up interest rates. C. Bank of England controls on commercial bank lending D. Credit rationing
9	Consider the five panels of the figure on the previous page in which of the five would monetary policy be the weakest.	A. Panel a B. Panel d C. Panel b D. Panel e
10	A state of government bonds by the central bank should cause	A. Bond prices to rise B. an increase in the supply of money C. An increase in chartered banks loans D. A decrease in reserves of the banking system.

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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

The Central Bank controls money and credit with the exception of.

Credit constitutes.

The rate of which central bank lends to commercial banks is known as

Money or paper currency serves at least _______ functions.

During period of inflation

If the State bank of Pakistan wished to pursue a light monetary policy it would.

In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up the equilibrium level of aggregate output to _______ and the IS curve to shift to the _______

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

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

Other things equal a decrease in autonomous consumption shifts the _____ curve to the

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 _______

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.

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

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

An autonomous increase in money demand.

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

a contractionary monetary policy

Increasing the government budget deficit.

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

"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.

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

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Set 4

Set 5

Set 6

Set 7

Set 8

Set 9

Set 10

Set 11

Set 12

Set 13

Set 14

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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In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up the equilibrium level of aggregate output to _ and the IS curve to shift to the _

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

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 _____

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.