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Homeowners who refinanced their mortgages took out cash and reduced their monthly payments at the same time. Much of the cash obtained by refinancing was spent on consumer durables, home improvements and the like.

Quote by Martin Feldstein about home, time

Refinancing allowed households to take out cash to spend...

Refinancing allowed households to take out cash to spend on other things while also reducing their monthly mortgage payments.

Quote by Martin Feldstein about things

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