Current Account Deficit - Expenditure Reducing and Expenditure Switching Policies

Current Account Deficit - Expenditure Reducing and Expenditure Switching Policies. A video covering Current Account Deficit - Expenditure Reducing and Expenditure Switching Policies
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[@tejashirani2152]

this is insane the amount of analysis and evaluation bloody hell dal!

[@lewisbaudry5304]

did nobody else notice how funny the beginning and the end was?

[@rexynator_ytb]

:)

[@mohammedmahmood502]

i dont think he realised he was filming

[@EternalShadow1667]

He forgot to edit the video lmao, still excellent though

[@icefrog007]

My didnt know how to cut a vid haha. Still rly useful. I like how his face expressions at the just disappeared hahah

[@lewisbaudry5304]

@@icefrog007 fr. This guy saved my econ mark

[@dstl312]

went for exams and this was in the paper thanks for the help

[@dinoantoski468]

This guy should be protected at all cost

[@julienducasse3986]

What is the point of going to College when I have your Videos?

[@jamesbrown4270]

@Jake Scott lmao 2021 exams

[@jamesbrown4270]

@Jake Scott I hope so lol

[@davidtiareh4938]

​@Jake Scott feel you bro. these clowns running the government kept fucking up and now teachers look at our progress over 2 years to set our grades. all the mf like me who study in the last two months got fucked right in the bumhole.

[@jakesmith5699]

@Romeo Cash ew

[@ShubhamSingh_97]

To get your degree🙇‍♂️

[@arpananepal5261]

you are great!! thank you so much.May God bless you.

[@taprituska2120]

hey sir, thank you very much for all your help, I am sitting my micro and macro AS Mock, I would like to say a big big thank you for your help in clearing up my understanding of economic essays and how to write them successfully

[@KhatuShyamji1105]

I hv watched many of ur videos......really good

[@christellemarchese9165]

Very helpful! Thank you!

[@yeesha5674]

I appreciate you greatly.

[@kidbornbrat1812]

Wonderful. We r hearing u from Zim

[@ghsjgsjg53chjdkhjydhdkhfmh74]

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[@iReaperYo]

legendary guy

[@katz6284]

It’s coming home 🏴󠁧󠁢󠁥󠁮󠁧󠁿

[@madboy2191]

thank you so much really helped me out

[@lalrinkima6425]

Good one!

[@fakecheese9444]

Brilliant.

[@gitanjaliexpress90]

The video was really helpful. But please explain this switching and reducing policy with the help of a graph, showing NX=0, AD and AS Interaction.

[@austinwachira5185]

Dal The Man!

[@MC10W]

Expenditure-reducing and expenditure-switching Expenditure-reducing policies aim to reduce demand in the economy, so spending on imports fall. Expenditure-switching policies aim to switch consumer spending towards domestic goods, and away from imports.

[@tipy959]

Im currently in my final year of the new aqa specification. Would you recommend using past papers from the previous spec for my revision or should I use other materials such as questions from revision guides/textbooks? Keep up the good work:)

[@adamc8512]

good shout. me too, hope this dude replies. he's a genius

[@hopelessspoiler8913]

Its Too late I guess

[@raghavsekhri7263]

@@hopelessspoiler8913 definitely too late

[@fr3ddytv3]

How did you do in the exam and where are you now?

[@tipy959]

@@fr3ddytv3 Can't remember the exact exam result but I got an A overall for Econ. Graduated with a 2:1 from Loughborough University last year. I've been all over Europe traveling and now I'm almost done and ready to hunt for a job 🙂

[@physics_il9029]

life saviour

[@samh6814]

For the point on protectionism foul this be demonstrated with a leftward shift in LRAS?

[@_.jaydenm._]

🎉🎉

[@zdx1484]

can you not be so handsome in your videos? it's very distracting

[@fawazshahul7152]

Kinda gay

[@ja711rich8]

Bros gay💀

[@AmrinaFarin]

Could be a girl too

[@fizabedi]

Hi, could you explain what the difference is between protectionism and import substitution, if there is one ? Your videos have been very helpful ! thanks

[@laurenngng]

Not econplusdal but if my understanding is correct, protectionist policies are used to impose restrictions on trade and services with the main objective to protect domestic industries, and import substitution is shifting consumption from foreign goods to domestic goods. One main problem with import substitution is that domestic firms may not be efficient enough or have the resources to do so, making it far more expensive and costly than it would be if it was imported

[@ismaeelmahmood7259]

how would you write up the conclusion to a 25 marker about reducing the deficit?

[@ismaeelmahmood7259]

tho i'm probably a bit late

[@sammykenny2195]

goat

[@chescahampson783]

Could you explain the point that you make at about 2.30 on the marginal propensity to import being high please:) ?

[@realFriedrichHayek]

The marginal propensity to import measures how much of every additional unit of income earned is spent on imports. If this value is low then economic agents (consumers, producers) are not likely to buy imports. If the value is high then this means that a lot of additional income earned is being spent on imports. Can link this to the multiplier value. where: Multiplier value is = 1/(MPM + MPS + MPT).

[@KevinGrinker]

Income generally is used on 4 things: consumption (MPC), savings (1-MPC), taxation (t) and imports (MPI). If you reduce one's income, you are reducing their disposable income which reduces their ability to buy imports and hence decreases the current account deficit (M decrease)

[@tlj9106]

​@@realFriedrichHayek 3:20 doesnt he mean marginal propensity to import will be lower? Because if income reduces then people won't spend on imports as much?

[@tlj9106]

@@KevinGrinker at 3:20 doesnt he mean marginal propensity to import will be lower? Because if income reduces then people won't spend on imports as much?

[@realFriedrichHayek]

​@@tlj9106 I see where you are coming from, but he is right in this situation. When the MPM (marginal propensity to import) is high, it means that lots of your income will be spent on imports. When MPM is low, it means that lots of your income are NOT spent on imports. What this means, is that if incomes fall, your MPM is already low, and you're running a current account deficit, then any fall in income won't have as much of an impact on reducing the current account, because the amount spent on imports was already low! I.e. Change is small and insignificant. If the MPM is high, and incomes fall, then the amount of money spent on imports will fall a lot because the amount of money that can be spent on imports is significantly lower now. It's best to illustrate this through an example. Current income: £100 MPM = 9/10 (very high) MPM Formula = Change in Imports/Change in Income If incomes drop to £50, then: 9/10 = Change in Imports / (100 - 50) 9/10 = Change in imports / 50 Change in imports = £45 Same numbers, but make MPM low MPM = 1/10 Current income = £100, which then drops to £50: 1/10 = Change in imports / (100 - 50) Change in imports = £5 You can see from both examples, that if incomes drop dramatically, and the MPM is low, then it has a little impact on the current account deficit, (£5 vs £45). Yes, there is a difference, but the policy he mentions at 3:20 works best if MPM is high. Hope that helps :)

[@JH-hf8pg]

Essay Pair 2? Completed it mate

[@emilycook1544]

could you say that with tightening monetary poilicy, for evaluation, increase interest rates may increase hot money inflow, leading to an appreciation and a subsequent worsening in the current account deficit?

[@zak1495]

Yes that’s great evaluation to use

[@wibblywobbly999]

Might you say that if the economy is operating at YFE and at the vertical part on the LRAS curve, a fall in AD may lead to a fall in inflation, but no fall in income, and thus increase real incomes at the same time, leading to even more imports and a further worsening of the current account?

[@FunnyRelevantShorts]

shut up

[@wibblywobbly999]

@@FunnyRelevantShorts A*

[@crucify9631]

the fall in inflation may not cause an increase in real incomes if the reduction in aggregate demand only causes disinflation and not deflation - therefore real incomes are still falling, just at a slower rate. it depends on the original rate of inflation and the size of the aggregate demand reduction.

[@tonyp4255]

I love you dal

[@elsaluvsnutella]

i love you

[@dinoantoski468]

Bro can u come to macedonia and fix our Financial crisis

[@PT-jt9xv]

why do gov want balanced trade?

[@humayunhabibulrichikram3880]

cuz its kewl sumtimes

[@nadaimran521]

is he married? 🥰

[@animehub1611]

would be surprised if hes not

[@robbiebrown602]

jah bless

[@tdofeldt5742]

6:25

[@tdofeldt5742]

9:40

[@tdofeldt5742]

0:35

[@shivrajsinghchordia2679]

make notes please

[@abhinavgupta8995]

r u an indian

[@ThePaperCreater]

Does he sound Indian to you? lmao

[@suryapaudel4590]

Hi is non resident Indian.

[@elizabethannuk]

Could someone tell me where can we learn about the WIDEC and SPICED ? @EconplusDal

[@car9182]

I'm late but you'll typically see WIDEC and SPICED discussed in videos around exchange rate. This is because the acronyms mean S - stronger P - Pound (Using the UK currency as an example, but this acronym applies to any currency) I - Imports C - Cheaper E - Exports D - Dearer (More expensive) Which essentially means as the Pound goes up in value (becomes stronger) individuals and firms can buy more of foreign goods because the pound is worth more in foreign countries ultimately having the impact of raising imports. However exports become more expensive (Dearer) to foreign consumers (Let's say UK exports for example) which may reduce the amount that the domestic country exports as other global competitors may offer similar goods for cheaper Alternatively, WIDEC stands for W - Weaker (pound) I- Imports D - dearer E - exports C- cheaper This essentially refers to the currency losing value/depreciating meaning that individuals can import less with that currency. For example, the value of the pound in dollars may be £1 =$ 1.50, meaning with £1 you could import $1.50 worth of American goods. However, the value of the pound may fall resulting in £1 only being worth $1.25, resulting in individuals not being able to import as much as before as importing the same quantity will require more pounds. On the other hand, exports being cheaper generally refers to the price of domestic goods (Let's say the UK again) being cheaper in foreign currency and therefore because of the lower price, these goods become more competitive against what foreign economies are exporting, theoretically increasing the amount of exports and export revenue gained from trading.

[@elizabethannuk]

@@car9182 aah thanks... Done and dusted with economics now✨