The "Iron Logic" of Diminishing Returns in the Solow Model

question 159

Multiple Choice

The "iron logic" of diminishing returns in the Solow model means that:

• A) eventually output will cease growing even though capital is still growing.
• B) eventually capital will cease growing even though output is still growing.
• C) capital and output will continue to grow indefinitely, but at a diminishing rate.
• D) eventually capital and output both will cease growing.