The marginal productivity principle demonstrates that distribution under a capitalist system is ethically valid.

In the above figure, in order for the equilibrium price to remain constant while the equilibrium quantity increases, the

A) supply and demand curves both would have to shift leftward. B) supply curve would have to shift leftward and the demand curve would have to shift rightward. C) supply curve would have to shift rightward and the demand curve would have to shift leftward. D) supply and demand curves both would have to shift rightward.

If exchange rates are floating, the Fed increasing its target inflation rate will cause the dollar to ________ relative to other currencies and cause net capital outflows to ________

A) appreciate; increase B) appreciate; decrease C) depreciate; increase D) depreciate; decrease