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

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