If the Fed wanted to reduce the federal funds interest rate, it might:
a. decrease the interest rate it pays on bank reserves.
b. decrease the required reserve ratio

Since most people would be willing to pay far more for a cup of diamonds than for a cup of water,

A) diamonds provide more satisfaction to most people than water provides. B) most people are irrational when it comes to prestige or status goods. C) most people wrongly think they value diamonds more highly than water. D) people's choices and preferences are often inconsistent. E) very few people are ever in danger of dying of thirst.

Jack just received a promotion at work and now works 50 hours per week instead of 35. As a result,

A) the unemployment rate increased. B) the labor force participation rate increased. C) the unemployment rate decreased. D) neither the unemployment rate nor the labor force participation rate changed.