which best describes what a subsidy does?\no it keeps the price of domestic goods relatively low.\no it…
which best describes what a subsidy does?\no it keeps the price of domestic goods relatively low.\no it raises the price of imported goods.\no it encourages the import of foreign goods.\no it eliminates all taxes on domestic goods.
Answer
Brief Explanations:
A subsidy is a payment from the government to producers. It reduces the cost of production for domestic producers, allowing them to offer goods at lower prices. It doesn't raise the price of imported goods (tariffs do that), doesn't encourage import of foreign goods, and doesn't eliminate all taxes on domestic goods.
Answer:
It keeps the price of domestic goods relatively low.