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, at K₁, net investment is ________ and the economy ________.

A) negative; will grow
B) positive; is in its steady state
C) zero; is in its steady state
D) positive; will grow
E) negative; will contract