Figure 8.1 -Refer to Figure 8.1. What Will Happen to the Long

Figure 8.1
-Refer to Figure 8.1. What will happen to the long run equilibrium if the economy changes saving rates from s1 to s2?

A) K will decrease and the long run equilibrium will move from point D to Point A.
B) K will increase and the long run equilibrium will move from point A to Point E.
C) K will increase and the long run equilibrium will move from point D to Point E.
D) K will decrease and the long run equilibrium will move from point D to Point E.