How do economist define a "bubble"? Provide an example of an asset market that you think could be the next bubble and explain why?

Suppose there is an increase in the interest rate in the financial markets. What effect will this have on income? Use a diagram to support your answer.

Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Which curve will shift: supply or demand? In which direction will the curve shift: right or left? (It may help to use a demand and supply diagram to conduct your analysis.)  a. The number of people at the most common ages for home-buying decreases.    b. Rents rise extremely rapidly.  c. Banks that have made home loans find that a larger number of people than they expected are not repaying those loans.  d. Because of a threat of a war, people become uncertain about their economic future.The overall level of saving in the economy diminishes.  e. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.

What have you learned in the movie "The Wolf on Wall Street" that is related to Economics?