5
QuizMultiple Choice

Study Guide and Quiz

Question 5 • GA-Introduction to Business and Technology

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

Answer
A
Raising its interest rates
B
Keeping its interest rates low
C
Increasing its exports
D
Avoiding debt

Explanation

Keeping interest rates low can make a country’s currency less attractive to investors, weakening its value relative to the U.S. dollar. Then U.S. consumers can buy that country’s products for fewer dollars, helping keep them inexpensive. Raising interest rates can strengthen the currency and make its products cost more in the U.S.

AI-written and checked against the verified answer.

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