PPSC Economics Topic 4 MCQS Test Preparation

Punjab Public Service Commission, PPSC takes the competitive exam to offer the deserving candidates suitable positions in several governmental organizations. Candidates who are willing to apply for the coming PPSC examination session with the subject of Economics are advised to start their preparation as soon as possible. The reason behind this endorsement is that candidates with exceptional results secure suitable positions and the exceptional result is a result of exceptional preparation.

MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy

Try The MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Topic 4 Monetary & Fiscal Policy

00:00
Question # 1

The government performs its redistribution function mainly through.

Question # 2

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

Question # 3

If the Bank of Pakistan wished to pursue an expansionary monetary policy it would.

Question # 4

In the Keynesian cross diagram a decline in autonomous consumer expenditure causes the aggregate demand function to shift down The equilibrium level of aggregate output to ___________ and the IS curve to shift to the

Question # 5

What's the most common way for a central bank to reduce the money supply.

Question # 6

A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.

Question # 7

The equilibrium level of saving is.

Question # 8

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

Question # 9

A business cycle refers to.

Question # 10

In economics money refers to

Question # 11

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

Question # 12

Why do people keep currency in their pockets when bank deposits pay interest.

Question # 13

in The Liquidity trap region

Question # 14

In the 1930s, when Keynes was alive a expansionary fiscal policy taking everything else constant would have led to.

Question # 15

Monetary policy is concerned with influencing.

Question # 16

An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the

Question # 17

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

Question # 18

Which of the following persons would be considered unemployed.

Question # 19

Disposable income is obtained by subtracting ________ taxes from personal income

Question # 20

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

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PPSC Economics Chapter 4 Important MCQ's

Sr.# Question Answer
1 Credit constitutes.
A. Saving made available to borrowers
B. A form of liquid asset
C. bank loans converted into commodity money
D. Money used as a standard of deferred payment.
2 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 _______
A. rise ; LM ;right
B. rise ; IS ; right
C. Fall ; LM ; left
D. rise ;IS; right
3 What happens to the money supply if the deficit is financed by selling bonds to the central bank.
A. The money supply increases
B. The money supply decreases
C. The money supply is unaffected
D. We cannot tell what will happen to the money supply
4 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
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 Money and income are.
A. Mirror image of each other
B. Two quite different concepts
C. Both measured as a per annum flow
D. Two ways of looking at the same thing.
7 A shift in tastes loward foreign goods______ net exports and causes the quantity of aggregate output demanded to.
A. decreases ; rise
B. decreases ; fall
C. increases ; rise
D. increases ; fall
8 Money or paper currency serves at least _______ functions.
A. Three
B. Four
C. Five
D. Seven
9 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
10 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

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