Big Short Analysis
For this extra credit assignment, you are required to watch t
Big Short Analysis
For this extra credit assignment, you are required to watch the movie “The Big Short,” a film that focuses into the events leading up to the 2008 financial crisis. After watching the movie, you will need to answer a series of questions related to economics, demonstrating your understanding of the economic concepts depicted in the film.
Movie Link
Questions:
Discuss the role of mortgage-backed securities (MBS) and collateralized debt obligations (CDOs) as depicted in the film leading up to the financial crisis. Analyze how these financial instruments contributed to the housing market bubble and eventual collapse.
Assess the impact of the events portrayed in the movie on the micro economy. Consider factors such as household consumption, firms cost structure, and profitability.
Instructions:
Watch the movie “The Big Short” in its entirety without using AI assistance or external aids.
Answer each question in complete sentences, providing detailed explanations and examples where applicable.
Avoid consulting external sources or using AI for assistance while answering the questions.
Submit your responses in a clear and organized manner, ensuring coherence and accuracy in your analysis.
This extra credit assignment offers an opportunity to deepen your understanding of the complexities of the financial system and its implications for the broader economy. Your critical analysis of the movie’s themes and economic concepts will be essential in earning credit for this assignment.