Multiple Choice
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 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:

Verified
Correct Answer:
Verified
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