Question # 1

Factor that cause the IS curve to shift include.

Choose an answer

Change in autocoups consumer spending

Change in taxes

Change in government spending

All of the above

One of money's primary roles in the economy comes from the use of money to transfer purchasing power to the future This role of money is called.

Choose an answer

store of value

Unit of account

Medium of exchange

Standard of deferred payment

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

Choose an answer

IS ; right

Is ; Left

LM ; Left

LM ; Rfight

Following the work of _____________ in the 1960s, and the controversy associated with these views in the 1970s, there was a revival of interest by economists and government in monetary policy.

Choose an answer

Milton Friedman

Ronald Reagan

Margaret Thatcher

John Maynard Keynes

The intersection of the IS and LM curves captures.

Choose an answer

The equilibrium of the demand and supply sides of the economy

the equivalence of monetary and fiscal policy

Joint equilibrium in the goods and money markets

All of the above

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

Choose an answer

Increase; increases ; right

Increase ; decreases ; left

decreases ; increases ; left

decreases ; decreases ; left

During periods of negative demand shocks deficit target reductions such as those mandated in the Gramm Rudman Hollings Act would tend to.

Choose an answer

Stimulate the economy and increase empolyment.

Result in additional recessionary declines in employment and income

Stimulator defiance spending

Have an automatic stabilizing impact upon the economy

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

Choose an answer

The money supply increaes

The money supply decreases

The money supply is unaffected

We cannot tell what will happen to the money supply

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 _______

Choose an answer

rise ; LM ;right

rise ; IS ; right

Fall ; LM ; left

rise ;IS; right

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

Choose an answer

Because banks might steal your money

Because currency is more liquid

Because bank deposits lose value due to inflation

Because bank deposits lose value due to exchange in interest rates.

An increase in the money supply other thighs equal shifts the ______ curve to the

Choose an answer

IS ; right

Is ; left

LM ; Left

LM ; right

Suppose velocity is constant and the real income elasticity of the demand for money is less than one then estimating inflation as money growth rate minus real growth rate.

Choose an answer

Overestimates inflation

Underestimates inflation

Is an erratic estimate of inflation

Remain an accurate estimate of inflation.

There are ______ methods of measuring GDP

Choose an answer

Three

Four

Five

None

When a government prints money to finance its expenditures it is likely to cause

Choose an answer

Unemployment

Inflation

Deflation

Reductions in the use of barter

A checking deposit held at a commercial bank is considered ______ of that bank.

Choose an answer

An asset

Net worth

a liability

Capital

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

Choose an answer

right ; falls

right ; rises

left ; falls

left ; rises

An autonomous increase in money demand.

Choose an answer

Shift the IS curve to the right

Shifts the IS curve to the left

Shift the LM curve to the right

Shift the LM curve to the left

The main role of the Federal Reserve is to

Choose an answer

Administer the government on the state of the economy

Overses the operations of the financial system and monetary management.

Establish the value of the dollar and official interest rates

Provide advice to the government on the state of the economy.

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

Choose an answer

IS ; right

Is ; Left

LM ; Left

LM ; Rfight

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

Choose an answer

M1 and M2 both increases

Neighed M1 nor M2 increase

M1 increase but M2 does not

M2 increased but M1 does not.

In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift _____ and the equilibrium level of aggregate output to.

Choose an answer

up ; rise

up ; fall

down ;rise

down ; fall

More Classes

Other Links

PPSC Economics Chapter 4 Monetary & Fiscal Policy MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer