One reason the demand for money became more volatile in Australia during the mid-1980s was:
A) the supply of money was more volatile.
B) the government imposed new restrictions on financial institutions.
C) the government began deregulating financial institutions.
D) the government capped interest rates.

Question

Quizplus · Accepted Answer

The mid-1980s saw the Australian government begin deregulating financial institutions. This led to increased competition in the financial sector and greater diversity in available financial products, which in turn made demand for money more volatile.

One Reason the Demand for Money Became More Volatile in Australia