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Because of the Papacy moving to Avignon, dissatisfied Italian cardinals elected a rival pope in Rome.

Because the Papacy moved to Avignon, dissatisfied Italian cardinals elected a rival pope in Rome.

If the cause is a single noun, then "because of" is appropriate, but if the cause is an entire action, then "because" must be followed by a full clause. The GMAT does not accept "because of" + [noun] + [participle] as a substitute for the [noun] + [verb] structure of a full clause.

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