Rising Market Interest Rates in the 1960s and the 1970s,combined

question 1

Multiple Choice

Rising market interest rates in the 1960s and the 1970s,combined with regulated deposit rate ceilings,

• A) worked in the short-run to give mortgage-issuing institutions a source of low-cost funds.
• B) led eventually to an outflow of deposits from depository institutions.
• C) led to financial innovations that worked to avoid these regulations.
• D) did all of the above.
• E) did only A and C of the above.

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