Question

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

A
B
C
D

Answer 1

B

Keeping its interest rates low tends to weaken the country’s currency (or prevent it from appreciating), making its goods cheaper in U.S. dollar terms and thus less expensive for U.S. consumers.