The Federal Reserve Bank wants to decrease interest rates. Which action should the Federal Reserve Bank take to achieve this goal?

Decreasing the money supply would have the opposite effect of what the Federal Reserve aims to achieve. By reducing the amount of money circulating in the economy, the cost of borrowing would rise, resulting in higher interest rates, which contradicts the goal of stimulating economic activity through lower rates.

While decreasing regulations on lenders might encourage more lending, it does not directly affect the money supply or interest rates. This choice does not guarantee a decrease in interest rates, as the underlying availability of money in the economy plays a more significant role in determining those rates.

Increasing regulations on lenders would likely have a constraining effect on lending practices, reducing the availability of credit and potentially raising interest rates. This action would counteract the Federal Reserve's goal of decreasing interest rates and stimulating economic activity.