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Refer to the Following Figure When Answering the Following Questions

Question 3

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Refer to the following figure when answering the following questions.
Figure 5.1: Solow Diagram Refer to the following figure when answering the following questions. Figure 5.1: Solow Diagram   -In Figure 5.1, if the economy begins with the initial capital stock at K<sub>1</sub>, the capital stock will ________ and the economy will ________. A)  decrease; grow B)  increase; grow C)  stay constant; shrink D)  decrease; shrink E)  stay constant; grow
-In Figure 5.1, if the economy begins with the initial capital stock at K1, the capital stock will ________ and the economy will ________.


A) decrease; grow
B) increase; grow
C) stay constant; shrink
D) decrease; shrink
E) stay constant; grow

Correct Answer:

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