If a Larger Share of National Output Is Devoted to Investment

Multiple Choice

If a larger share of national output is devoted to investment, starting from an initial steady-state capital stock below the Golden Rule level, then productivity growth will:

A) increase in the short run but not in the long run.
B) increase in the long run but not in the short run.
C) increase in both the short run and the long run.
D) not increase in either the short run or the long run.