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 K₃, the capital stock will ________ and the economy will ________.

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