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The table lists four facts about market economies. Fact 1. Stock markets sometimes crash and sometimes are gripped by irrational optimism. 2. Taxes influence incentives

The table lists four facts about market economies. Fact 1. Stock markets sometimes crash and sometimes are gripped by irrational optimism. 2. Taxes influence incentives and discourage investment. 3. Human capital expands because of choices and discoveries result from choices. 4. Discoveries bring profit comma and competition destroys profit. How are these facts considered by new growth theory? Question content area bottom Part 1 A. Fact 1 is not emphasized by new growth theory and Fact 2 is not emphasized by new growth theory. B. Fact 2 is not emphasized by new growth theory and Fact 4 is not emphasized by new growth theory. C. Fact 3 is emphasized by new growth theory and Fact 4 is not emphasized by new growth theory. D. Fact 1 is emphasized by new growth theory and Fact 3 is emphasized by new growth theory

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