Assume That the Stock of Capital (K) Increases by 6

Multiple Choice

Assume that the stock of capital (K) increases by 6%. Holding all other factors constant, we know with certainty that which of the following will occur?

A) Output per capita will increase by 6%.
B) Output will increase by less than 6%.
C) The capital- labour ratio will increase.
D) Output will increase by 6%.
E) The capital- labour ratio will decrease.