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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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 an economy experience high interest rates and high unemployment The ISLM frame work predicts that _________ policy has been too.	A. fiscal ; expansionary B. fiscal ; contractionary C. monetary ; expansionary D. monetary ; contractionary
2	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
3	An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _______ relative to foreign goods and results in a ______ in net exports.	A. Cheaper ; decline B. Cheaper ; rise C. dearer ; decline D. dearer ; rise
4	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.
5	The money multiple tells us teh ultimate increase in.	A. The income level due to an increase in the money base B. The money supply due to an increase in the money base. C. The money supply due to an increase in the income level D. The income level due to an increase in the money supply
6	"The impact on this monetary aggregate of extensive finance innovation -the changes in the kinds of deposits and services offered by banks led the central bank to drop M1 as a n intermediate target with the changes in the way the public was holding payments balances the M1 aggregate no longer that the same reliable link to.	A. Tax rates B. The money supply C. Aggregate demand D. Government spending
7	Money is	A. An indicator of the scarcity of wants B. Anything that sellers accept i exchange for goods and services. C. A form of barter D. Anything that the government classifies as a trade commodity.
8	The investment demand curve shows the relationship between the levels of.	A. Investment and consumption B. Consumption and Interest rate C. Investment and interest rate D. None
9	The quantity theory of money allows monetarists to obtain a number of economics predictions by assuming a constant.	A. Velocity of money B. Nominal output C. Overall price level D. Stock of money
10	If the original money supply is MSo and the original demand for money is MDo then	A. The equilibrium interest rate and savings are 5% and 50 B. The money supply is 200 and equilibrium income is 500 C. The equilibrium interest rate and income are 5% and 600 D. The speculative demand is 25

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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 IS curve shifts to the left when

In the Keynesian cross diagram, a decline in autonomous consumer expenditure causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to.

"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.

in The Liquidity trap region

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

Believers in the monetarist rule assert that

A monetary action consistent with the central bank selling bonds in the open market would be.

If the Federal reserve conducts open market __ the money supply __ shifting LM curve to the left.

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

If Federal reserve conducts open market sales, the money supply ___ shifting the LM curve to the_____

Knowledge of the money supply can lead to good predications of nominal GDP only

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

a contractionary monetary policy

If the Central Bank wanted to decrease the quantity of money held by the public it would.

An increase in money _______ shifts the LM curve to the _____ causing the interest rate to fall and output to rise

During the early years of the Great depression there was a significant decrees n the the money supply that causes. the ______ to shift____

Employment tends to _______ whwn aggregate output.

A decrease in the quantity of money supplied shifts the money supply curve to the________ and the equilibrium interest rate

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.

A Political problem with discretionary fiscal policy is the.

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

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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

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If the Federal reserve conducts open market the money supply shifting LM curve to the left.

If Federal reserve conducts open market sales, the money supply _ shifting the LM curve to the___

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

An increase in money ___ shifts the LM curve to the _ causing the interest rate to fall and output to rise

During the early years of the Great depression there was a significant decrees n the the money supply that causes. the __ to shift

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.