When expansionary policy is unanticipated, it leads to a short-run expansion in output and employment

Bank capital can best be described as:

A) funds contributed by shareholder purchasers of a bank's stock plus the accumulated retaining earnings B) the accumulated amount of reserves held by a bank C) the location of most of the major banks of a country D) another name for bank assets

A headline reads "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n):

A. Increase in the price and quantity of new homes B. Decrease in the price and quantity of new homes C. Increase in the price of new homes and decrease in quantity D. Decrease in the price of new homes and increase in quantity