Refer to the Following Figure When Answering the Following Questions

question 54

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 5.1: Solow Diagram
-In Figure 5.1, at K₁, net investment is ________ and the economy ________.

• A) negative; will grow
• B) positive; is in its steady state
• C) zero; is in its steady state
• D) positive; will grow
• E) negative; will contract

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