Because perfectly competitive markets rarely exist in the real world, the model has limited usefulness

Which of the following is a TRUE statement about stock markets?

A) Economists can make above-average profits in the stock market because of their specialized knowledge of economics. B) It is always better to buy growth stocks than the older and more stable blue-chip stocks. C) The stock market on average over time is random and totally unrelated to the performance of the economy. D) It is illegal for a friend of a corporate executive to make large profits in the stock market by using his inside information.

When the government budget deficit rises, national saving is reduced, interest rates rise, and investment falls

a. True b. False Indicate whether the statement is true or false