The federal government (1) encouraged the development of the savings and loan industry, (2) virtually forced the S&L industry to make long-term fixed interest rate mortgages and (3) forced S&L to obtain most of their capital as deposits that war withdrawable on demand

a: would the S&L be better off if the rates are expected to increase or decrease in the future?

b: Would the S&L industry be better off if individual institutions sold off their mortgages to federal agencies and then collected servicing fees or if the institutions held the mortgages that they originated?