Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve raises the required reserve ratio to 12 percent, then the bank will now have excess reserves of

________ examines whether one variable has an effect on another by simply looking directly at the relationship between the two variables

A) Reduced-form evidence B) Organizational-model evidence C) Direct-model evidence D) Structural-model evidence

For the infant-industry argument for tariffs to be appropriate, it is necessary that

A) the industry be deemed essential by the government. B) the government can identify which industries will eventually be able to compete with more established foreign producers. C) only industries that currently are operating efficiently will be protected. D) the country has access to the most modern production techniques.