In the Solow Model,saving and Investing in Additional Factories and Computers

Multiple Choice

In the Solow model,saving and investing in additional factories and computers does __________ .But in the long-run,the __________ accumulation leads the return to these investments to fall.

A) lead output to grow in the medium run;diminishing returns to capital
B) lead output to grow in the long run;increasing returns to capital
C) lead output to grow in the medium run;increasing returns to capital
D) not lead output to grow in the medium run;diminishing returns to capital
E) not lead output to grow in the long run;diminishing returns to capital