Can someone explain me Income & Net export negative relation?
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Just feel the question, you will get the reason. When income rises then net export will fall because net export is (excess of export over import) so with increase in income we will demand more foreign good and hence import will rise and net export will fall.
While if domestic price falls then our goods become cheap and foreigners will demand more due to which our export will rise and hence net export rises.
Just feel it once.
I hope it helps.
Domestic price increase (exchange rate increase) (Rs strong to USD)
Goods cheaper in USA compared with India,
hence, Increase in Imports
I think 2nd one will be like this or one you explained both are same.
Both income & price increase And thanks for clearing Income related.