In Neoclassical Growth Theory,increasing the Amount of Capital Employed in Production

question 65

Multiple Choice

In Neoclassical growth theory,increasing the amount of capital employed in production ________ the average standard of living as long as the marginal product of capital exceeds zero.

• A)unambiguously raises
• B)unambiguously reduces
• C)has no effect on
• D)at first raises but eventually reduces
• E)at first reduces but eventually raises