ECON 209 Midterm: Econ Midterm Review.docx

• School: McGill University
• Department: Economics
• Course: ECON 209
• Professor: Wendy Dickinson

Document Summary

Conditions under where currency will be devalued: fixed exchange rates, dealing with bop, will devaluation help you (bringing in net cash) or hurt you, either spend less on imports or bring in more of exports, works only in special case, sum of demand elasticity on part of foreigners buying your currency and the demand for your foreign goods, negative devaluation = more money net goes out, bob dunn chapter 17. Question of elasticity dunn: voting, brokerage discussion, coming into gains from trade discussion, model talking about banking, finance, products, options, connector between macro and micro. Seller may be willing to bring product to market: voting models, communication of info, main point: contrary to finding of perfect competition sometimes price discrimination is what works, prisoners dilemma, both confess because they get the best of the worst outcomes, therefore, need to figure out another strategy to get efficient outcomes.