which best describes what a subsidy does? it keeps the price of domestic goods relatively low. it raises the…
which best describes what a subsidy does? it keeps the price of domestic goods relatively low. it raises the price of imported goods. it encourages the import of foreign goods. it eliminates all taxes on domestic goods.
Answer
Brief Explanations:
A subsidy is a financial aid from the government to producers. It reduces their production - costs, allowing them to offer goods at lower prices. This keeps the price of domestic goods relatively low. Raising the price of imported goods is more related to tariffs. Subsidies are for domestic producers, not for encouraging imports. And subsidies don't eliminate all taxes on domestic goods.
Answer:
It keeps the price of domestic goods relatively low.