Suppose that the per-capita capital level in an economy is k₁. Which of the following statements is correct according to Solow model?
A. By the diminishing returns property, k₁ is better than k₂ and k₃ because it has higher marginal returns.
B. At k₁, depreciation of capital exceeds the investment. Thus, k falls until reaching a steady state.
C. Since the growth of capital is positive, capital accumulation will increase until reaching a steady state.
D. The per-capita capital level k₁ is inefficient because the investment and saving levels are very high.