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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

a sound and/or slightly restrictive monetary policy , stable credit conditions , and/or conditions where supply is equal to demand(passive) can be caused byFalling inflation rates

Falling energy pricesare causingfalling inflation rates

a sound and/or slightly restrictive monetary policy , stable credit conditions(passive) can be caused byFalling inflation rates

But the only way deficits could raise real rates without raising nominal rates would becausedinflation to fall

a fall in demand ... a rise in the inflation ratecausesinflation to fall

an increase in the repo rate ... in turncausesinflation to fall

a fall in demandcausesinflation to fall

If inflation is caused by an unexpected increase in aggregate demand , a contractionary monetary policy might be appropriateto causeinflation to fall

positive supply - side(passive) caused byfalling inflation expectations

The demand for goods and services will then dropwill causeinflation to fall

the factorshave causedinflation to fall

a positive monetary policy shockcausesinflation to fall

Falling fuel and food pricescausedinflation to fall

prices ... Kenya 's consumer price indexwill ... causeinflation to fall

would becausedinflation to fall

the Fedcausedinflation to fall

a central bank holding interest rates low for a long periodwill causeinflation to fall

interest ratesdo ... causeinflation to fall

Yields being set higher by central bankscausesinflation to fall

d services will then dropwill causeinflation to fall

for goods and services will then dropwill causeinflation to fall

the domestic monetary contractioncausesinflation to fall

s will then dropwill causeinflation to fall

the recessioncausesinflation to fall

a recessioncausesinflation to fall

The initial short - term unemploymentcausesinflation to fall

Thingscauseinflation to fall

depressed demandcausinginflation to fall

to saycausedinflation to fall

The resulting excess supply of goods , services , and laborwould causeinflation to fall

global economic recessionis causinginflation to fall

maintaining a relatively fixed exchange rate while inflation continues to occurcausinginflation to fall

hence the demand for imports the weakening export - led multipliercausinginflation to fall

Kenya 's consumer price indexwill ... causeinflation to fall

an expansionary fiscal policycausesinflation to * fall

world oil prices plummetcausinginflation to fall

what elsewould causeinflation to fall

for weaker economic growth to take some timecausesinflation to fall

Output Gaps & Inflation Recessionary gapcausesinflation to fall

the money that is moved abroad will stop circulatingcausinginflation to fall

to the Federal Reservecontributedto the Federal Reserve

price inflationcausesprice inflation

oftenwill ... leadoften

in an unwanted tightening in ECB monetary policy because real interest rates would risewould resultin an unwanted tightening in ECB monetary policy because real interest rates would rise

to lower prices in the economy A.will leadto lower prices in the economy A.

to lower prices in the economywill leadto lower prices in the economy

to the decisionalso contributedto the decision

to longer - term yields fallingcontributedto longer - term yields falling

to lower prices in the economy A. True B.will leadto lower prices in the economy A. True B.

thushave ... resultedthus

in an unwanted tightening in ECB monetary policywould resultin an unwanted tightening in ECB monetary policy

the central bank to extend the rate cutting cycle next weekto promptthe central bank to extend the rate cutting cycle next week

in rather unconventional monetary policy being put in place by the European Central Bankhave resultedin rather unconventional monetary policy being put in place by the European Central Bank

over 2 %has contributedover 2 %

to a fall in interest rates which in turn results in an increase in the value of units of income fundsleadsto a fall in interest rates which in turn results in an increase in the value of units of income funds

a relative stagnationcausesa relative stagnation

European house prices to rise at a slower rate this yearwill causeEuropean house prices to rise at a slower rate this year

central banks to tighten monetary policy faster than expectedcould promptcentral banks to tighten monetary policy faster than expected

your money to lose purchasing powercausingyour money to lose purchasing power

stock prices to fallcan causestock prices to fall

to falling stock pricesleadsto falling stock prices

real yields to risehas causedreal yields to rise

to season ticket train faremay leadto season ticket train fare

to the deterioration in asset qualityhad contributedto the deterioration in asset quality

to real income increaseswill leadto real income increases

employees to demand higher wages , to keep up with consumer pricescan promptemployees to demand higher wages , to keep up with consumer prices

to falling interest rateswill ... leadto falling interest rates

to a cut in interest ratesfast leadingto a cut in interest rates

unemployment to rise after 1970scausingunemployment to rise after 1970s

to real income increases Year - on - year percentage change Sourcewill leadto real income increases Year - on - year percentage change Source

in turnledin turn

to deflationcould leadto deflation

to deflationleadingto deflation

to a real drop in basic State social guaranteeshas ledto a real drop in basic State social guarantees

given constant nominal ratecausesgiven constant nominal rate

to lower purchasing prices for managersledto lower purchasing prices for managers

the real cost of borrowing for average companies to rise from zero to 5.5pc since 2011has causedthe real cost of borrowing for average companies to rise from zero to 5.5pc since 2011

in cap rate compression and rising property valueswould resultin cap rate compression and rising property values

on the other handresultson the other hand

the RBIwould leadthe RBI

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Smart Reasoning:

C&E

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