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The housing market has collapsed. Banks are becoming very restrictive in their lending practices. Which of the following actions would the Fed most likely take

The housing market has collapsed. Banks are becoming very restrictive in their lending practices. Which of the following actions would the Fed most likely take to encourage banks to expand lending to home buyers? (4 points) Question 13 options: 1) Increase federal funds and prime rates 2) Lower reserve requirements 3) Sell government securities 4) Shut down open-market operations

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