1. Why do debt deflations occur in advanced countries but not in emerging-market countries? 2. What technological innovations led to the development of the subprime mortgage market? 3. Why is the...

1. Why do debt deflations occur in advanced countries but not in emerging-market countries?

2. What technological innovations led to the development of the subprime mortgage market?

3. Why is the originate-to-distribute business model subject to the principal agent problem?

4. True, false, or uncertain: Financial engineering always leads to a more efficient financial system. Explain your answer.

5. How did a decline in housing prices help trigger the subprime financial crisis of 2007 2008?