How will demonetization affect exports in the near future? 6 mark answer
Dear Student
Demonitization will lead to fall of aggregate demand in the domestic country since there will be less money in the hands of people . So that will lead to deflation . Hence it can be expected that exports will rise . Domestic goods will be lower in price and so more in demand in foreign markets .
Regards .
Demonitization will lead to fall of aggregate demand in the domestic country since there will be less money in the hands of people . So that will lead to deflation . Hence it can be expected that exports will rise . Domestic goods will be lower in price and so more in demand in foreign markets .
Regards .