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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

imports will soarcausinga balance of payments deficit

falling exports(passive) caused bythe balance of payment deficit

income tax ... importscausesa balance of payments deficit

as imports will exceed exports due to a lower pricecausinga deficit in balance of payments

To satisfy domestic demand , imports rise and exports falltriggeringa 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

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

Changes in National Income : If the national income increases , it will lead to an increase in importsthereby creatinga deficit in balance of payments

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

that a great increase in production and exports would be necessaryto preventa 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

> Problems of a current account deficitmay causeA Balance of payments 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

they buy foreign exchange in massive amountcausingdeficit in balance of payment

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

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

These combined deficitsresultedin Balance of Payment deficits

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

This will helpto preventa balance of payments deficit

Massive capital outflowscreatea balance of payments deficit

declining capital flowscauseda balance of payments deficit

This situationcreatesa balance - of - payments deficit

This has manifested in the disequilibrium , in her balance of paymentcausinga balance of payment deficit

Jwill resulta balance of payments deficit

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

Nathens ABwill resulta balance of payments deficit

The country surplus ... the reduction in exportinghas createda deficit in the balance of payment

the differencecreatesa balance of payments deficit

less remittance revenuecausingdeficit in our balance of payment

the high import demand under a fixed exchange rate(passive) might have been created bya balance of payments deficit

valuable foreign documents ... an outgoing capital flowcausesdeficit in the balance of payments

the over - expansionary fiscal deficit , which is financed by money creationleadsto a deficit in balance of payments

Over - valued exchange rateleadsto a deficit in the balance of payment

Those that spend the paper wealth which is beyond any relationship to wages , will do so primarily on imported goodsthereby creatinga balance of payments deficit

a deteriorating current accountcontributingto a balance of payment deficit

expansion of bank creditmay createa balance of payments deficit

over - valued exchange rates(passive) caused byDeficit balance of payments

to a sizeable outflow of gold ( Mishkin 19992leadsto a sizeable outflow of gold ( Mishkin 19992

to a sizeable outflow of gold Mishkin Early writersleadsto a sizeable outflow of gold Mishkin Early writers

to a sizeable outflow of gold Mishkin Cipriani and Santoleadsto a sizeable outflow of gold Mishkin Cipriani and Santo

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

to a sizeable outflow of gold , Role of monetary policy in a developing economyleadsto a sizeable outflow of gold , Role of monetary policy in a developing economy

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

to a sizeable outflow of gold Mishkin Allen was ready to quit and return home to Wichita , Kansas , after no realtor would sell him a suburban homeleadsto a sizeable outflow of gold Mishkin Allen was ready to quit and return home to Wichita , Kansas , after no realtor would sell him a suburban home

gold outflows and unemploymentcausesgold outflows and unemployment

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 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

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

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

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

unequal flow ofcausesunequal flow of

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

to a sizeable outflow of foreign reserveleadsto a sizeable outflow of foreign reserve

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

in rising inflationresultedin rising inflation

Aggregate Demand to decreasewill causeAggregate Demand to decrease

to devaluation of the currencycan leadto devaluation of the currency

in foreign reserves declineresultingin foreign reserves decline

in depletion of foreign exchange reservesresultingin depletion of foreign exchange reserves

to a shortage of currencyleadingto a shortage of currency

serious problemscreatesserious problems

currency to depreciate the growth rate of imports and exportswill causecurrency to depreciate the growth rate of imports and exports

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

the currency when floating exchange rate regime is operatinginfluencesthe currency when floating exchange rate regime is operating

to a contractionary impact under the fixed exchange rate systemwill leadto a contractionary impact under the fixed exchange rate system

High economic growthwill leadHigh economic growth

the interest rate to fallwould causethe interest rate to fall

to the decline in foreign currency reserves , which dropped to $ 15.1 billion from $ 26.6 billion in June 2011contributedto the decline in foreign currency reserves , which dropped to $ 15.1 billion from $ 26.6 billion in June 2011

from efforts to restore economies devastated during World War II and bolster the military security of the United States and its alliesresultingfrom efforts to restore economies devastated during World War II and bolster the military security of the United States and its allies

a slight depreciatio 6_2_Brief_Answers_to_Problems_and_Questions_for_Review_docx Briefanswerstoproblemsandquestionsforreview 1would causea slight depreciatio 6_2_Brief_Answers_to_Problems_and_Questions_for_Review_docx Briefanswerstoproblemsandquestionsforreview 1

from the drop in the inflow of foreign investments as well as tourismresultingfrom the drop in the inflow of foreign investments as well as tourism

from a fall in export demandwill resultfrom a fall in export demand

from domestic inflationresultingfrom domestic inflation

in a loss of international reserves ( Rresultsin a loss of international reserves ( R

from efforts to restore economies devastated during World War II and to bolster the military security of the U.S. and its alliesresultingfrom efforts to restore economies devastated during World War II and to bolster the military security of the U.S. and its allies

his balanced ring modulator diagram sleeve or slicing sadlycauseshis balanced ring modulator diagram sleeve or slicing sadly

to chaoscan leadto chaos

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Smart Reasoning:

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