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 .

 

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it will increase exports as demonetizationationation led to deflation
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