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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

possible causes or factorsleadto a situation of liquidity trap in the economy

the Fedcould influencethe economy in a liquidity trap via QE

the negative real rate problemcausedthe liquidity trap problem

negative interest ratescausedglobal liquidity trap risk

asset purchasesdesignedto drive the economy out of liquidity trap

any strategydesignedto get the world economy out of the " liquidity trap

interest rates fall too muchmay leadto the situation of liquidity trap

Deflationcan leadto an economic situation known as the liquidity trap

the central bankto influenceregulate liquidity in the economy

fiscal stimuluscontributesto the existence of a liquidity trap

To enable the central bankto influenceregulate liquidity in the economy

IL&FS defaultledto a liquidity crunch in the economy

To the extent that it pushes greater savings onto the global market , the global short- term equilibrium rate would fall furtherleadingthe global economy closer to the liquidity trap

by corruption(passive) caused byliquidity in the economy

That result ... the products (influencesthe economics of liquidity supply

by debt - deflation(passive) is causedthe Keynesian liquidity trap

when people hoard cash because they expect an adverse event such as ... for money(passive) is causedA liquidity trap

when people hoard cash(passive) is causedA liquidity trap

when people hoard cash because they(passive) is causedA liquidity trap

a particular level of interest ratescausesthe liquidity trap

when people hoard cash because they expect(passive) is causedA liquidity trap

moneyleadsto a liquidity trap

when people hoard cash because they expect an adverse event like deflation , insufficient aggregate demand , or war(passive) is causedA liquidity trap

when people hoard cash because they expect an adverse event such as(passive) is causedA liquidity trap

when people hoard cash because they expect an adverse event such as deflation(passive) is causedA liquidity trap

rate is zero , or just above zerocausinga liquidity trap

by the Fed(passive) caused bya liquidity trap

4 ) Deflationleadingto a liquidity trap

when people hoard cash because they expect an adverse event such as deflation , insufficient aggregate demand , or war(passive) is causedliquidity trap

when people hoard cash because they expect an adverse event such as deflation , insufficient aggregate demand , or war(passive) is causedA liquidity trap

when people hoard cash because they expect an adverse event such as deflation , insufficient aggregate demand , or war(passive) is caused"A liquidity trap

that deflationmust leadto a liquidity trap

by deflation(passive) caused bya liquidity trap

by deflation(passive) caused bythe liquidity trap

a situation in which the short - term nominal interest rate is zero , or just above zerocausinga liquidity trap

is zero , or just above zerocausinga liquidity trap

zero , or just above zerocausinga liquidity trap

there is a lack of demand for credit by the private sectorleadingto a liquidity trap

interest on reservescontributesto the liquidity trap

monetary policy?s abilityto causein a liquidity trap

firms to reduce production and income and drive the fiscal balance towards increasing deficitswill ... causefirms to reduce production and income and drive the fiscal balance towards increasing deficits

credit markets to freeze up and unemployment to increasecausingcredit markets to freeze up and unemployment to increase

customers to delay paymentscould causecustomers to delay payments

to other businesses also defaultingleadingto other businesses also defaulting

to see(passive) can ... be caused byto see

in the fall in assent priceswould resultin the fall in assent prices

in the building up of a relatively huge asset bubble in The latterhad resultedin the building up of a relatively huge asset bubble in The latter

economic cycles(passive) are caused byeconomic cycles

to speculationcontributesto speculation

in low salesresultedin low sales

from the fiscal surplus?1resultedfrom the fiscal surplus?1

from the fiscal surplus?1resultedfrom the fiscal surplus?1

many people not having a disposable income for spendingresultingmany people not having a disposable income for spending

to the collapse in the prices of Bitcoinhas ledto the collapse in the prices of Bitcoin

to a delayed reaction and the return of inflationcould leadto a delayed reaction and the return of inflation

in liquidity tightness in a large number of MSEs in the manufacturing and services sectorhas resultedin liquidity tightness in a large number of MSEs in the manufacturing and services sector

to deflationleadsto deflation

to increased inflation rather than rising employmenthas ledto increased inflation rather than rising employment

to a low demandleadingto a low demand

money supply to go downhas causedmoney supply to go down

a general decrease in price levelscausesa general decrease in price levels

to a bankscan leadto a banks

directlyleaddirectly

government - RBI relations(passive) provoked bygovernment - RBI relations

to a recessionhave ... ledto a recession

currency instabilityis causingcurrency instability

to a ripple effect in the banking sector as well as anything that banks have a hand inwill leadto a ripple effect in the banking sector as well as anything that banks have a hand in

the country to fall into a liquidity trapcan ... causethe country to fall into a liquidity trap

These problems(passive) were no longer being caused byThese problems

the problems(passive) caused bythe problems

problems(passive) allegedly caused byproblems

higher investmentcauseshigher investment

to a record - slow recovery in the U.Shave ledto a record - slow recovery in the U.S

to no growthcan ... does leadto no growth

to no growthdoes leadto no growth

to bank failuresmight have contributedto bank failures

when people hoard cash because theyis causedwhen people hoard cash because they

to more investmentshould leadto more investment

stagnation of capital flowcausedstagnation of capital flow

to no growth and deflationcan ... does leadto no growth and deflation

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Smart Reasoning:

C&E

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