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Which of the following strategies can a country use to keep its products inexpensive for consumers in the U.S. ?

A. Raising its interest rates
B. Keeping its interest rates low
C. Increasing its exports
D. Avoiding debt
Need help fast pls!!!

2 Answers

4 votes

Answer:

Keeping its intrest rates low

Step-by-step explanation:

ED

User Vedburtruba
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4 votes

Answer: B. Keeping its interest rates low

Step-by-step explanation:

There exists a direct relationship between interest rates and currency value. This means that when interest rates are high in a country, its currency value will most likely be high as well compared to the currency value of other countries.

If a country keeps its interest rates low, this will keep their currency value low. For instance, if Canada has low interest rates, the Canadian dollar will decrease in value relative to the US dollar thereby making Canadian goods cheaper for American consumers.

User Berkcan
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