MCQsDrive | MCQsDrive

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.

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

The interest rate ?

A is determined in the goods market and influences the level of planned investment and thus the money market

B is determined in the money market and influences the level of planned investment and thus the goods market

C is determined in the goods market and has no influences on the money market

D is determined in the money market and has no influence on the goods market

Review Detailed Answer

Correct Answer: is determined in the money market and influences the level of planned investment and thus the goods market

An increase in the money supply aimed at increasing aggregate output is referred to as ?

A contractionary fiscal policy

B expansionary monetary policy

C contractionary monetary policy

D expansionary fiscal policy

Review Detailed Answer

Correct Answer: expansionary monetary policy

The chain of events that results from an expansionary monetary policy is ?

A aggregate output increases the demand for money increase the interest rate increase planned investment

B money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase

C money supply increases the interest rate increase planned investment increases aggregate output increases and money demand increases

D money demand increases the interest rate decreases planned investment increases aggregate output increases and money demand increases

Review Detailed Answer

Correct Answer: money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase

In terms of the demand for money the interest rate represents ?

A the rate at which current consumption can be exchanged for future consumption

B the price of borrowing money

C The opportunity cost of holding money

D the return on money that is saved for the future

Review Detailed Answer

Correct Answer: The opportunity cost of holding money

The opportunity cost of holding money is determined by ?

A the discount rates

B the level of aggregate output

C the interest rates

D the inflation rates

Review Detailed Answer

Correct Answer: the interest rates

Showing 21 to 30 of 71 results

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

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 ?

The interest rate ?

An increase in the money supply aimed at increasing aggregate output is referred to as ?

The chain of events that results from an expansionary monetary policy is ?

In terms of the demand for money the interest rate represents ?

The opportunity cost of holding money is determined by ?