PPSC Economics Topic 4 Monetary & Fiscal Policy

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zaheer hussain 18 - Jan - 2024 14 Min 06 Sec 11/20
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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a ____ shift of the _____ curve.	A. Left ward ; LM B. Right ; LM C. Left ward ; IS D. Left ward ; AD
2	"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. Upward B. Down ward C. To be zero D. To match inflation
3	An increases in the value of the Rupee makes foreign goods cheaper relative to Pakistan goods, resulting in a _______ in net exports and a __ shift of the IS curve	A. fall ; leftward B. rise ; leftward C. fall ; rightward D. rise ; rightward
4	" A growing number of economists view the Fed's new willingness to take on more of the nation's debt as inflationary in the long run." This inflation worry is because.	A. The government may tax less B. The debt may become excessive C. The government may spend more D. The money supply may increase excessively
5	Identify the three motives of money demand.	A. Accumulative B. Speculative precautionary C. Speculative transaction precautionary D. Precautionary special trisection
6	The main source of interest profits for banks is.	A. Checking account fees B. Loans C. Government securities D. Savigng accounts
7	A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______	A. decreases ; rise B. decreases ; fall C. Increases ; rise D. Increase ; fall
8	The ratio of debt to GDP will be larger	A. The lower the real interest rate B. The lower the growth rate of output C. The lower the in initial debt ratio D. The lower the ratio of the primary deficit to GDP
9	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
10	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.

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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

When the value of the Rupee rises Pakistan goods become _____ expensive relative to foreign goods which ___ exports.

The quantity of money demanded varies

The opportunity cost of holding currency decreases when.

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 fall and the IS curve to shift to the.

A decrease iin money demand other thing equal shifts the _____ curve to the

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

A sale of bonds by the central bank should cause.

Keynes suggested that ________ income households consume a ____ proportion of their income than ____ income households.

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.

Consider the five panels of the figure on the previous page in which panel would fiscal policy be the strongest.

The government performs its redistribution function mainly through.

Which of the following causes M1 demand is decrease.

The market price of bonds can fluctuate depending on

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.

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.

As a result of the increase in government expenditures disposable income increases by.

The budget deficit tends to decrease when

An example of discretionary fiscal policy would be.

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

Net taxes are.

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

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Set 7

Set 8

Set 9

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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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When the value of the Rupee rises Pakistan goods become ___ expensive relative to foreign goods which _ exports.

Keynes suggested that ____ income households consume a proportion of their income than income households.

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.

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.