-In Figure 5.1,if the economy begins with the initial capital stock at K1,the capital stock will __________ and the economy will __________.
A)decrease,grow
B)increase,grow
C)stay constant,shrink
D)decrease,shrink
E)stay constant,grow

Question

-In Figure 5.1,if the economy begins with the initial capital stock at K1,the capital stock will __________ and the economy will __________.
A)decrease,grow 
B)increase,grow 
C)stay constant,shrink 
D)decrease,shrink 
E)stay constant,grow

Quizplus · Accepted Answer

If the economy begins with an initial capital stock at K1, the capital stock will increase as investment exceeds depreciation, leading to economic growth.