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Economics Mcqs 4423 MCQs [All-Courses]

Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

Three variables affect the demand for money they are _ and ____?

A bank opening hours, the proportion of weekly paid employee’s interest rates

B the price level interest rates real income

C The time of year bank opening hours the price level

D The proportion of weekly paid employees the time of year real income

Review Detailed Answer

Correct Answer: the price level interest rates real income

The money supply is ?

A State Bank of Pakistan Issue Department

B Money + bank cards + credit cards

C Cheques + money + bank cards + credit cards

D Currency in circulation plus bank deposits

Review Detailed Answer

Correct Answer: Currency in circulation plus bank deposits

The primary function of bank is to ?

A Control the money supply

B Provide notes and coins for trade

C Make a profit

D Provide a cheque clearing system

Review Detailed Answer

Correct Answer: Make a profit

Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be and the LM curve must be ?

A flat; steep

B flat; flat

C steep; flat

D steep; steep

Review Detailed Answer

Correct Answer: flat; steep

When the money supply increase ?

A the economy moves up the LM curve

B The LM curves shifts to the left

C The economy moves down the LM curve

D The LM curve shift to the right

Review Detailed Answer

Correct Answer: The LM curve shift to the right

The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the ?

A aggregate supply curve

B LM curve

C aggregate demand curve

D IS curve

Review Detailed Answer

Correct Answer: LM curve

If planned investment becomes more sensitive to interest rate changes the crowding out effect will ?

A be reduced

B not be affected

C fall to zero

D be increased

Review Detailed Answer

Correct Answer: be increased

If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?

A Suffer even more

B not be reduced as much as it would have been

C be replaced by foreign investment

D be replaced by consumer spending

Review Detailed Answer

Correct Answer: not be reduced as much as it would have been

According to the simple Keynesian view the aggregate supply curve is ?

A downward sloping over all levels of output

B upward sloping over all levels of output

C horizontal until it reaches full capacity and then becomes vertical

D vertical until it reaches full capacity and then becomes horizontal

Review Detailed Answer

Correct Answer: horizontal until it reaches full capacity and then becomes vertical

For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?

A decrease the money supply

B increase the money supply

C increase the demand for money

D decrease the demand for money

Review Detailed Answer

Correct Answer: increase the money supply

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

Three variables affect the demand for money they are _ and ____?

The money supply is ?

The primary function of bank is to ?

Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be and the LM curve must be ?

When the money supply increase ?

The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the ?

If planned investment becomes more sensitive to interest rate changes the crowding out effect will ?

If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?

According to the simple Keynesian view the aggregate supply curve is ?

For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

Three variables affect the demand for money they are _______ and __________?

The money supply is ?

The primary function of bank is to ?

Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?

When the money supply increase ?

The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the ?

If planned investment becomes more sensitive to interest rate changes the crowding out effect will ?

If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?

According to the simple Keynesian view the aggregate supply curve is ?

For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?

Three variables affect the demand for money they are _ and ____?

Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be and the LM curve must be ?