The line of argument at 1:50 onwards is strange. If foreign incomes fall they will buy fewer UK exports. This is not a change in their MPM. It is simply a consequence of having less money.
Yes, but having less money causes a decrease in their MPM. If foreign household incomes fall, while the prices of goods in UK don't change, after taxation and spending on necessities, their real disposable income is lower. This is what causes a decrease in the marginal propensity to import.
If there are high/ strict protectionism of foreign countries, wouldn't it be harder to import their goods, so imports decrease and (X-M) increases and AD increases?
strong protectionism acts levied on countries restricts the amount of goods they can import from countries abroad through either tariffs or quotas, reducing the value of imports and causing exports to increase.
Hi, just wondering why it is that an increase in relative inflation reduces net exports. But an increase in inflation also leads to a fall in the exchange rate which increases net exports? How does that work?
Great question, No idea. I think the fall in exchange rate where the pound is worth less relative to currency X we would be able to buy less goods per £1 then if the value of our pound were to increase so our imports would decrease so our net exports would increase, just work with equation - I think.
An inflation to a home country will make its exports less competitive relative to its trading partner (ceteris paribus), thus AD shifts to the left. Meanwhile, an increase in inflation from a home country makes exports less competitive to the WORLD market, thus less countries would use your currency (fall in exchange rate). A fall in exchange rate for the home country means its currency was weakened, therefore less import expenditure because importing is expensive for the home country (and more export revenue coz your exports are cheaper). As a result, AD will shift to the right, ceteris paribus.
"love that don't you " , you have no idea Dal
EconplusDal is the new freesciencelessons
Petition to get Dal a bronze statue outside the Bank Of England
Yaqub Hussain is that you yaqub?
Abeer Saeed might be 🤔
im dead
Do we need to make that sound (2:26) when talking about import expenditure in the exam?
hahahhaha
yes
yeah
😂😂😂
You have 2 or u lose marks
Thank you sooo much, you've literally helped me teach myself the whole of macro before my exam, I appreciate these videos so much!!
This is why he's the GOAT! THE GOOOAATT
almost 2 years since this video was posted.. Your teachings ways are amazing
did you do well?
@@ree0055 no response rip
When she asks you what that mouth do: 2:26
ffs 😭
2:26 yw
I got an ad for clicking that shet
@@aceplayys7847 Give Dalster ur ad money
Love you mate, truly a legend
Good point that, value of exports and imports, not just quantity...
2:26 is gold
My only inspiration for my ib economics essays😂🙏
Do that noise again Dal
2:26 kinda sus
Don’t question the dalster’s methods
Maxime Le Marchand I could never disrespect the legend himself
you’re one to talk
Man sounds like he's drinking a potion in Minecraft
You are my favourite tutor please help me i have a presentation to make "how does net exports determine national income"?
please make a video for the new aqa econ spec (paper 1, 2 and 3)
much appreciated
thats hot bro
Can you make papers on exam technique for AQA new linear papers 1, 2 and 3
Thanks
good video
The line of argument at 1:50 onwards is strange. If foreign incomes fall they will buy fewer UK exports. This is not a change in their MPM. It is simply a consequence of having less money.
Yes, but having less money causes a decrease in their MPM.
If foreign household incomes fall, while the prices of goods in UK don't change, after taxation and spending on necessities, their real disposable income is lower. This is what causes a decrease in the marginal propensity to import.
****not the quantity of X, M but the export revenue, import expenditure
Can I ask smb to open the abbreviations SPICED and WIDEC? Thanks in advance.
SPICED : Strong Pound/Currency will mean Imports Cheaper, Exports Dearer (expensive). WIDEC : Weak Pound/Currency will mean Imports Dearer Exports Cheaper.
@@sidrahbittercookies1853thank u
for 5 cn ytou say an evalaution RELATIALTION>
SIORRY 4 #
What factor causes a country's exports to increase (or decrease) between a particular trading partner?
All of the factors he explored causes an effecting on net trade.
peak
If there are high/ strict protectionism of foreign countries, wouldn't it be harder to import their goods, so imports decrease and (X-M) increases and AD increases?
strong protectionism acts levied on countries restricts the amount of goods they can import from countries abroad through either tariffs or quotas, reducing the value of imports and causing exports to increase.
Hi, just wondering why it is that an increase in relative inflation reduces net exports. But an increase in inflation also leads to a fall in the exchange rate which increases net exports? How does that work?
Great question, No idea. I think the fall in exchange rate where the pound is worth less relative to currency X we would be able to buy less goods per £1 then if the value of our pound were to increase so our imports would decrease so our net exports would increase, just work with equation - I think.
@Motivational Speeches Strong pound imports cheap exports deer. Weak pound imports deer and exports cheap.
@Motivational Speeches m8 I got you.
An inflation to a home country will make its exports less competitive relative to its trading partner (ceteris paribus), thus AD shifts to the left. Meanwhile, an increase in inflation from a home country makes exports less competitive to the WORLD market, thus less countries would use your currency (fall in exchange rate). A fall in exchange rate for the home country means its currency was weakened, therefore less import expenditure because importing is expensive for the home country (and more export revenue coz your exports are cheaper). As a result, AD will shift to the right, ceteris paribus.