PPSC Economics Topic 4 Monetary & Fiscal Policy

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

S

Shiza Amir 25 - May - 2022 02 Min 08 Sec 18/20
K

khurram shazzz 02 - Mar - 2022 04 Min 47 Sec 18/20
S

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

Ayesha siddiqa 02 - Jul - 2021 19 Min 10 Sec 17/20
T

Tayyeba 29 - Jun - 2021 09 Min 28 Sec 16/20
F

Funny world with amazing facts 22 - Apr - 2022 06 Min 10 Sec 15/20
S

sidra Naeem 22 - May - 2022 13 Min 44 Sec 13/20
A

Abdul Qayyum 25 - May - 2024 07 Min 53 Sec 12/20
H

Hassan Mehmood 03 - Apr - 2022 08 Min 20 Sec 12/20
S

Shama Suleman 21 - May - 2022 12 Min 21 Sec 12/20
A

Amjad Ali 07 - Jun - 2023 12 Min 49 Sec 12/20
S

Shad Ali Shah 27 - Jul - 2024 15 Min 17 Sec 12/20
D

DJ DJ 12 - Aug - 2022 11 Min 02 Sec 11/20
Z

zaheer hussain 18 - Jan - 2024 14 Min 06 Sec 11/20
M

Mahnoor NaSir 24 - May - 2022 07 Min 27 Sec 9/20

PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	Which of the following causes M1 demand is decrease.	A. A fall in the tax rate B. An increase in income C. A fall in the interest rate D. An increase in the use of credit cards
2	Despite an expansionary monetary policy an economy experiences a recession the recession could occur in spite of the right ward shift of the LM curve if	A. The IS curve shifts left ward B. The IS curve shifts right ward C. The money supply increase D. Taxes are cut
3	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
4	Time lags which often erode effectiveness of monetary and fiscal policy measures represent.	A. The change in export and import price. B. Delays in the response of the economy to stabilization policy. C. The foreign response to price changes D. The change in exchang erates
5	An example of nondiscretionary fiscal policy would be.	A. The operation of the welfare state B. A Federal jobs program adopted to stimulate consumption C. A tax cut adopted to stimulate consumption D. An interest rate cut implemented to stimulate consumption
6	The aggregate demand curve is downward sloping because a higher price level.	A. Makes people wealthier and so they spend more B. Causes higher wages and so people spend more C. Cuts the real value of income and so people spend less D. Decreases the real supply of money decreasing spending.
7	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
8	A decrease in autonomous consumer expenditure causes the equilibrium level of 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
9	If the demand for money increase relative to the supply of money	A. Interest rates will trend upward B. Interest rates will trend downward C. Interest rates are not affected by increases in money demand D. Interest rates will behave randomly
10	What's the most common way for a central bank to reduce the money supply.	A. Collect higher taxes B. Sell bonds to the public C. Buy bounds from the government D. Buy bonds from the public

Latest Educational News Stories

Pakistan's Largest Database of Colleges and Universities

BS Programs

University Past Papers

University Results

Exam Results 2024

Study Abroad Programs and Opportunities for Pakistani Students

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

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.

The largest source of tax revenue for the federal government is.

Believers in the monetarist rule assert that

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

The main role of the Federal Reserve is to

Short run contractionary Fiscal policy would result in.

Which of the following would qualify as an aggregate demand shocks.

In the ISLM framework an expansionary monetary policy causes aggregate output to _____________ and the interest rate to

Fiscal policy refers to.

Suppose velocity is constant and the real income elasticity of the demand for money is less than one then estimating inflation as money growth rate minus real growth rate.

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

When considering any kind of economics indicator, prices are important because.

In the ISLM framework the decreasing investment spending believed by Keynes to be the cause of the Great Depression would be illustrated by a shift of the ____ curve to the.

Which policies are expenditure changing policies.

How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.

If the money supply change was correctly and fully anticipated for a change of M to MI new classical macroeconomics under the assumption of rational expectations would predict a movement from.

As the interest sensitivity of investment spending increase.

An increase in the quantity of money supplied shifts the money supply curve to the_______ and the equilibrium interest rate

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

Set 1

Set 2

Set 3

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

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