PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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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 Class Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	Intermediate goods are meant for	A. Direct use by the consumers B. Further processing C. The term do not exist D. None
2	When the value of the Rupee rises Pakistan goods become _____ expensive relative to foreign goods which ___ exports.	A. more ; iincreases B. less ; increases C. more ; decreases D. more ; increases
3	The situation in which the imports are greater than exports is termed as.	A. Trade surplus B. Trade deficit C. Budget surplus D. None
4	An increase in the money supply shifts the LM curve to the right causing the interest rate to __________ and output to.	A. rise ; rise B. rise ; fall C. fall ; rise D. fall ; fall
5	Employment tends to _______ whwn aggregate output.	A. rise, falls B. rise ; rises C. falls; rises D. Not change ; falls
6	If the central Bank wished to Tighten money is would.	A. Lower the discount rate B. Sell government securities C. Lower the legal reserve ratio D. Lower the tax rate
7	The economic logic behind granting central bank's independence from governmental the conduct of monetary policy is.	A. To eliminate seignior age B. To allow open market operations C. To enhance the credibility of monetary policy. D. None of the above
8	If firms paying employees monthly began paying them weakly then the demand for money would.	A. Rise and income would rise B. Rise and income would fall C. Fall and income would rise D. Fall and income would fall
9	An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the	A. right ; left B. right ; right C. left ; left D. left ; right
10	Given fixed exchange rates assume Pakistan initiates contractionary monetary ad fiscal policies to combat inflation. these policies will also.	A. Reduce a balance of payments surplus B. Reduce a balance of payments deficit C. Increases both imports and exports D. Decrease both imports and exports

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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

Consider the five panels of the figure on the previous page in which of the five would monetary policy be the weakest.

Consider the five panels of the figure on the previous page in which panel would the simultaneous imposition of restrictive monetary policy and expansionary fiscal policy cause the largest increase in interest rates.

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

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 shift in tastes toward Pakistan goods ________ net exports and causes the IS curve to shift to the.

Which of the following events will lead to a decrease in the demand for money.

A decrease in the legal reserve ratio from 25% to 20% will

Money is

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

"A monetary rule need not mean a single baid number If the central bank fears velocity shifts rules could be adopted for adjusting the target in the face of a trends change in velocity "If velocity were trending upward the target money growth rate would be adjusted.

A business cycle refers to.

An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____

At any given level of the interest rate expectations are likely to be___________ optimistic and planned investment is likely to be ______ when _________ is growing rapidly than when it is growing slowly or falling.

An increase in expected inflation is likely ot cause.

Believers in the monetarist rule assert that

The equilibrium level of saving is.

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the

The automatic stabilization function of fiscial policy ensures that government expenditures _________ and government revenues __ during recessions.

"Transactions" money is money used as a

A state of government bonds by the central bank should cause

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

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Topic Test

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

PPSC Class Economics Chapter 4 Important MCQ's

Test Questions

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An increase in oil prices, such as the oil shocks in the 70 s, lead to ___ there by causing _

At any given level of the interest rate expectations are likely to be_ optimistic and planned investment is likely to be when _ is growing rapidly than when it is growing slowly or falling.

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to ___ at any given interest rate and shifts the curve to the

The automatic stabilization function of fiscial policy ensures that government expenditures _______ and government revenues during recessions.