which best describes what a subsidy does?\nit keeps the price of domestic goods relatively low.\nit raises…
which best describes what a subsidy does?\nit keeps the price of domestic goods relatively low.\nit raises the price of imported goods.\nit encourages the import of foreign goods.\nit eliminates all taxes on domestic goods.
Answer
Answer:
It keeps the price of domestic goods relatively low.
Brief Explanations:
A subsidy is financial aid from the government to producers. It lowers production costs, allowing producers to offer goods at lower prices, thus keeping domestic - good prices relatively low.