1. What specific type type of sub prime mortgage helped ingnite the financial crisis 2008? what happened at the macroeconomic level--think interet rates--to cause this to start rapidly?
2. Under strong assumption that investors will be invested in either stocks or bonds at any given time, what will happedn to interest rates if stocks prices climb dramatically? what interaction or mechanisms cause this?
3. If business are indifferent between borrowing in the Brazilian real and us dollar, if rates rise in the us but stay steady in brazil, what will happen to the quantity of funds demanded in the us?