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

A tax increase __________ disposable income ____ consumption expenditure and shifts the IS curve to the.

Question # 2

A decrease in fully autonomous investment other things equal shifts the ______ curve to the

Question # 3

If the central bank prints more 10 billion and spends them then as a direct result of this action.

Question # 4

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

Question # 5

Time lags which often erode effectiveness of monetary and fiscal policy measures represent.

Question # 6

What happens to the money supply if the deficit is financed by selling bonds to the general public.

Question # 7

Short run contractionary Fiscal policy would result in.

Question # 8

Which policies are expenditure changing policies.

Question # 9

Monetary policy is concerned with influencing.

Question # 10

The opportunity cost of holding currency decrease when

Question # 11

An increase in expected inflation is likely ot cause.

Question # 12

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

Question # 13

Which of the followig does not shift the IS curve .

Question # 14

Employment tends to _______ whwn aggregate output.

Question # 15

Under system fixed exchange rates which of the following policies promotes internal balance for a nation.

Question # 16

Money is

Question # 17

"The earlier predictions underestimated currency in circulation and treasury balances at the Fed, both of which drained reserves from the banking system" Lower reserves means.

Question # 18

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

Question # 19

Which of the following would qualify as an aggregate supply shock.

Question # 20

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

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PPSC Economics Chapter 4 Important MCQ's

Sr.# Question Answer
1 A decrease in fully autonomous investment other things equal shifts the ______ curve to the
A. IS ; right
B. IS ; Left
C. LM ; Left
D. LM ; right
2 "The problem with monetarism is that its advocates have seen it as infallible over short periods of time and wish it to be rigid in its application over all periods of time "The advocates of monetarism wish it to the rigid in its application over all periods of time to.
A. Weaken fiscal policy
B. Avoid monetary policy errors
C. Strengthen the impact of monetary policy
D. Ensure the independence of the central bank
3 When your grandmother keeps her savings hidden under her mattress she is using money as.
A. a standard of deferred panyment
B. A comfortable thing for sleeping
C. A medium of exchange
D. A store of value
4 Which of the following is not an important variable in growth accounting calculations.
A. Productivity growth
B. Money supply growth
C. Labor growth
D. Capital growth
5 How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.
A. Rs.1 billion
B. Rs.2 billion
C. Rs.0.9 billion
D. Rs.0.5 billion
6 An autonomous rise in the value of the Rupee makes Pakistan goods _____ expensive relative to foresight goods which ______ net exports
A. Less ; decreases
B. Less ; increases
C. More ; decreases
D. more ; increases
7 If the central bank prints more 10 billion and spends them then as a direct result of this action.
A. M1 and M2 both increases
B. Neighed M1 nor M2 increase
C. M1 increase but M2 does not
D. M2 increased but M1 does not.
8 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
9 A shift in tastes toward foreign goods ______ net exports and causes the IS curve to shift to the
A. decreases ; right
B. decrease ; left
C. increase ; right
D. increases ; left
10 An item designed as money that is intrinsically worthless could the.
A. A currency note
B. A silver coin
C. A barter item
D. Any tradeable commodity

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