In the Solow Model, Saving and Investing in Additional Factories

Multiple Choice

In the Solow model, saving and investing in additional factories and computers does ________ output to grow in the ________ run if the economy is below Y*. But, in the long run, the ________ returns to capital accumulation lead the return to these investments to fall.

A) lead; medium; diminishing
B) lead; long; increasing
C) lead; medium; increasing
D) not lead; medium; diminishing
E) not lead; long; increasing