M C Q s D r i v e

Economics Mcqs 4423 MCQs [All-Courses]

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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.

If the keep some money available in case I see a bargain this is an example of ?

A asset demand for money
B transactions demand for money
C token demand for money
D precautionary demand for money
Correct Answer: precautionary demand for money

If banks and the private sector decide to hold less cash the money multiplier will be ?

A Unchanged
B Larger
C Smaller
D Unstable
Correct Answer: Larger

Banks create money by ?

A printing it
B issuing debit cards
C accepting cheques
D lending out part of their deposits
Correct Answer: lending out part of their deposits

Money has 3 main function they are __________ and __________?

A IOU , inflation hedge store of value
B Medium of exchange inflation hedge store of value
C Medium of exchange unit of account IOU
D Medium of exchange unit of account store of value
Correct Answer: Medium of exchange unit of account store of value

Each point on the LM curve represents the equilibrium point in the ?

A money market for the given level of the money supply
B money market for different combinations of interest rates and output
C goods market for the given level of government spending
D goods market for the given interest rate
Correct Answer: money market for different combinations of interest rates and output

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

A money supply curve
B LM curve
C money demand curve
D IS curve
Correct Answer: LM curve

Each point on the IS curve represents the equilibrium point in the ?

A goods market for the given interest rate
B goods market for the given level of government spending
C money market for the given level of the money supply
D money market for the given value of aggregate output
Correct Answer: goods market for the given interest rate

The way in which government spending is supposed to reduce investment is by increasing ?

A incomes
B overseas investment
C imports
D interest rates
Correct Answer: interest rates

The idea the government spending causes a reduction in private investment is called ?

A fiscal drag
B investment blight
C crowding-out
D the Thatcher effects
Correct Answer: crowding-out

If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur?

A a hyperinflation
B a depression
C stagflation
D a recession
Correct Answer: a hyperinflation