With Respect to Long-Run Economic Growth,one Rationale for the Idea

question 128

Multiple Choice

With respect to long-run economic growth,one rationale for the idea that there may be increasing marginal returns to investment is that

• A)as further investment takes place the economy moves down to the right along the marginal product schedule.
• B)as further investment takes place the economy moves upward to the left along the marginal product schedule.
• C)the investment costs to "followers" are lower than those for "pioneers."
• D)initial investment shifts the the investment demand schedule to the left,making further investment less costly.
• E)initial investment shifts the the aggregate demand schedule to the left,making further investment less costly.

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