1) The document discusses the housing bubble and its causes, including policies under Clinton to expand home ownership, pressure on Fannie Mae and Freddie Mac, lower interest rates after 9/11, and riskier loans fueling a hot housing market. 2) Students are assigned to study for an upcoming test, discuss questions about the housing bubble and economy in groups, and may need to submit their workbooks. 3) The Federal Reserve's tools including changing reserve requirements and interest rates are explained, as well as how they can be used to increase or decrease the money supply.