Assume That N and K Both Increase by 4

Multiple Choice

Assume that N and K both increase by 4%. The assumption of constant returns to scale implies which of the following?

A) Output (Y) will increase by 4%.
B) The capital- labour ratio will increase by 4%.
C) Y/N will increase by less than 4%.
D) Y/N will increase by exactly 4%.
E) Output per capita (Y/N) will not change.