Explanation

When total factor productivity (TFP) increases, the capital-to-labor ratio will most likely increase.

Reasoning:

• Total factor productivity represents technological progress and efficiency improvements that make both capital and labor more productive
• Higher TFP increases the marginal product of capital, making capital investment more attractive
• Firms respond to increased productivity by investing more in capital to take advantage of the higher returns
• This leads to capital accumulation and an increase in the capital-to-labor ratio

In economic growth models, technological progress (TFP growth) is a key driver of capital deepening, as it creates incentives for firms to invest in more capital equipment per worker.