Refer to the Following Figure When Answering the Following Questions

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 K₂, the capital stock will ________ and the economy will ________.

A) decrease; grow
B) increase; grow
C) stay constant; be in its steady state
D) stay constant; shrink
E) stay constant; grow