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3 votes
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


Please select the best answer from the choices provided

User MyLibary
by
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2 Answers

1 vote

Answer: B

Step-by-step explanation:

trust

User FutbolFan
by
4.7k points
4 votes

Answer:

Keeping its interest rates low

Step-by-step explanation:

Interest rates correlate with the exchange rate of a country. Low-interest rates are unattractive to foreign investors. Investors associate low-interest rates with reduced returns. In the foreign exchange market, the demand for such a country's currency will below, resulting in a lower exchange rate against other currencies.

If a country has low-interest rates, its currency will be in low demand, meaning its strength will be relatively weaker against the US dollar. One dollar will be able to buy a large quantity of goods and services from such a country. In other words, that country's exports will be cheaper in the USA.

User Junep
by
5.7k points