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Smart Reasoning:

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Qaagi - Book of Why

Causes

Effects

imports will soarcausinga balance of payments deficit

a gap between the countrys imports and exportsleadsto balance of payments deficit

oil imports and represented savings to American households(passive) created bythe balance of payments deficit

income tax ... importscausesa balance of payments deficit

Massive capital outflowscreatea balance of payments deficit

> Problems of a current account deficitmay causeA Balance of payments deficit

a fall in oil exports and mounting food imports(passive) caused bythe balance of payments deficit

falling exports(passive) caused bythe balance of payment deficit

To satisfy domestic demand , imports rise and exports falltriggeringa balance of payments deficit

due to number of factors(passive) may be causedDeficit in the balance of payments

factors external to the member(passive) caused bya balance of payments deficit

the inflow of foreign currency and foreign reserves ) and DECREASE in imports , does n’t our rupee strengthen rather than fallthereby preventinga Balance of Payments deficit

A strong pound is not always good for an economy ; it makes exports expensive and imports cheapercausinga balance of payments deficit

exports would decreaseleadingto Balance Of Payments Deficit

the royalties paid to other countries(passive) was contributed bythe balance of payment deficit

current account deficit 4.7876 0.3654 Budget deficitdoes ... causepayment balance deficit

increases in the demand for foreign currency or reductions in the available supply of it(passive) caused byBalance of payments deficits

the potential capital flight and the plunging commodity prices(passive) caused bythe balance of payments deficit

a decrease in the demand for Zimbabwean exports(passive) caused byA balance of payments deficit

a decrease in the demand for Bangladesh exports(passive) caused byA balance of payments deficit

a decrease in the demand for national exports(passive) caused byA balance of payments deficit

the fluctuation in exchange rate ... exportsresultsin Balance of Payment Deficit

that state control over currency limits the export growth that burdens the foreign currency reserves , as these reserves are expended to release international payments for imports and debt repaymentthus creatingthe balance of payment deficit

a decline in revenues of exports of goods and services and/or a large increase in the value of imports of agricultural products due to poor harvest(passive) caused bya balance of payments deficit

a high rate of domestic inflation(passive) caused bya balance of payments deficit

A combination of higher oil prices and the cessation of remittances from non - resident Indians ( NRFs ) in the Gulfcontributedto the precarious balance of payments deficit

inflation ... and so controlling inflation is the over - riding goal(passive) are caused bybalance of payments deficits

An appreciation would lead to exports being more expensive thereforecould contributet a balance of payments deficit

that a great increase in production and exports would be necessaryto preventa balance of payments deficit

Factors causing an increase in demand for foreign exchange would tendto causebalance of payments deficits

to increase over the next three years , mainly due to imports associated with fixed investment activity – especially relating to intermediate goods such as cement , steel and timber- and domestic consumption(passive) was setThe balance of payments deficit

ill - conceived economic policies(passive) created bybalance - of - payments deficits

These combined deficitsresultedin Balance of Payment deficits

other investment deficits increased by 71.6 million USDinfluencingthe balance of payments deficit

rising import bills(passive) caused bybalance - of - payments deficits

reserve lossesresultfrom balance of payment deficits

A loss of foreign exchange reservesresultingfrom a balance - of - payments deficit

declining capital flowscauseda balance of payments deficit

This will helpto preventa balance of payments deficit

importing more goods and services than we export – for decades(passive) created bybalance of payments deficit

from the Deployment of U.S. Forces in NATO Europe LetterResultingfrom the Deployment of U.S. Forces in NATO Europe Letter

a loss of confidence by foreign investorsmay causea loss of confidence by foreign investors

to temporary foreign exchange shortages in 2011contributedto temporary foreign exchange shortages in 2011

gold outflows and unemploymentcausesgold outflows and unemployment

a severe economic crisis(passive) caused bya severe economic crisis

a loss of confidence in the economy as the markets may view a country having a lack of control on their financesmay causea loss of confidence in the economy as the markets may view a country having a lack of control on their finances

the BP line to shift downward BP 1 LM 2 42causesthe BP line to shift downward BP 1 LM 2 42

the La Jolla exchange rate to depreciate ... thus increasing the price of goods importedwill causethe La Jolla exchange rate to depreciate ... thus increasing the price of goods imported

the national external debt to growhave also causedthe national external debt to grow

from extensive use of domestic creditresultfrom extensive use of domestic credit

in the loss of official foreign exchange reservesresultin the loss of official foreign exchange reserves

oftencauseoften

a country to lose international reservesalways causea country to lose international reserves

in increased indebtedness , depletion of gold reservesresultin increased indebtedness , depletion of gold reserves

unequal flow ofcausesunequal flow of

from an excess supply of money in the nationresultsfrom an excess supply of money in the nation

concern because post - Keynesians may result in financing difficulties and , possibly , a disorderly depreciation of the currencycauseconcern because post - Keynesians may result in financing difficulties and , possibly , a disorderly depreciation of the currency

from an excess demand of money in the nationresultsfrom an excess demand of money in the nation

to currency collapse and inflationleadingto currency collapse and inflation

from import liberalisationresultingfrom import liberalisation

What problems ... a Balance of Payments deficitwill ... causeWhat problems ... a Balance of Payments deficit

surpluses off debtscreatesurpluses off debts

to exchange rate depreciation ( Weerapana , 2003would leadto exchange rate depreciation ( Weerapana , 2003

problems for some developing nations ... and calling the picture “ quite mixedwould causeproblems for some developing nations ... and calling the picture “ quite mixed

or swollen by natural catastrophescreatedor swollen by natural catastrophes

Aggregate Demand to decreasewill causeAggregate Demand to decrease

in rising inflationresultedin rising inflation

26,000 new jobs and protect the 33,000 jobs under threat , while reducing the debtwould create26,000 new jobs and protect the 33,000 jobs under threat , while reducing the debt

to devaluation of the currencycan leadto devaluation of the currency

in depletion of foreign exchange reservesresultingin depletion of foreign exchange reserves

The current account deficit(passive) is influenced byThe current account deficit

in a decrease in the supply of domestic moneyresultsin a decrease in the supply of domestic money

outside Europe altogetheroriginatingoutside Europe altogether

to a Sterling Crisis , by which I assume they mean that the value of sterling will fall , not risewill leadto a Sterling Crisis , by which I assume they mean that the value of sterling will fall , not rise

in foreign reserves declineresultingin foreign reserves decline

in price changes for foreign goodscan resultin price changes for foreign goods

from a shortfall in export earnings of goods and services and/or a sharp increase in the value of agricultural imports due to a poor harvestresultingfrom a shortfall in export earnings of goods and services and/or a sharp increase in the value of agricultural imports due to a poor harvest

from the sharp decline in tourism revenuesresultingfrom the sharp decline in tourism revenues

Fed - created dollars to rush abroadcausesFed - created dollars to rush abroad

the central bank to lose its resultcausesthe central bank to lose its result

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