PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	Monetary policy can affect output.	A. this statement is always true B. This statements always false C. This statement is true only in the short run D. This statement is true only in the medium run and the long run
2	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
3	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
4	The budget deficit tends to decrease when	A. GDP increases B. GDP decreases rapidly C. GDP remains unchanged D. GDP decreases slightly
5	Why would corporations want to achieve zero balances in their checking accounts.	A. To earn more interest B. To avoid paying taxes C. to keep a low profile D. To circumvent banking regulations
6	The quantity of money demanded varies.	A. Directly with both prices and output B. Inversely with both prices and output C. Directly with prices and inversely with output D. Inversely with prices and directly with output
7	As the required reserve ratio is decreased the money multiplier.	A. Could either increase or decrease B. Remains the same as long as banks hold no excess reserves C. Increase D. Decreases
8	An example of discretionary fiscal policy would be.	A. The operation of the welfare sate B. The operation of the processive federal income tax C. A tax cut adopted to stimulate consumption D. An interest rate out in plummeted to stimulate consumption
9	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
10	In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up the equilibrium level of aggregate output to _______ and the IS curve to shift to the _______	A. rise ; left B. rise ; right C. fall ; left D. fall ; right

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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

Which of the following is not an important variable in growth accounting calculations.

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

an asset that can easily be exchanged for goods and services is called a.

The implementation lag for monetary policy is generally

An increase in money demand other thing equal shifts the ____ curve to the___

The purpose of financial intermediaries is.

The central bank and the government are working against each other if as the government cuts taxes the central bank

By controlling the monetary base economists mean

Weighted monetary aggregates

There are ______ methods of measuring GDP

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

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

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.

An autonomous rise in the value of the Rupee makes Pakistan goods _____ expensive relative to foresight goods which ______ net exports

The quantity of money demanded varies.

A tax cut __ disposable income _____ consumption expenditure and shifts the IS curve to the.

The main source of interest profits for banks is.

The intersection of the IS and LM curves captures.

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.

Under a fixed exchange rate system an expansionary fiscal policy leads to a

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

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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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An increase in money demand other thing equal shifts the __ curve to the_

An autonomous rise in the value of the Rupee makes Pakistan goods _ expensive relative to foresight goods which __ net exports

A tax cut disposable income ___ consumption expenditure and shifts the IS curve to the.

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.