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
Mark this and return

Answer 1

B

Keeping its interest rates low tends to weaken the country's currency (capital outflows/less demand for the currency), causing its goods to be cheaper in dollar terms for U.S. consumers.