Question

In gauging the importance of a potential support or resistance level, the analyst must consider:

A) Historical performance
B) Economic indicators
C) Market sentiment
D) Technical analysis

Answer 1

Economists use statistical techniques and econometric models to analyze markets and isolate the impact of individual factors. So, the correct answer is option b.

Step-by-step explanation:

When analyzing a market, economists deal with the problem that many factors that affect the market are changing at the same time through the use of statistical techniques and econometric models.

These tools allow economists to isolate the impact of individual factors on the market and assess their relative importance.

Economists also consider the interrelationships between various factors and try to identify any causal relationships.

So, the correct answer is option b.