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

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 helps reduce production - costs, allowing domestic producers to offer goods at relatively lower prices. Raising the price of imported goods is more related to tariffs. Subsidies are meant to support domestic production, not encourage import of foreign goods. And subsidies are not about eliminating all taxes on domestic goods.

Answer:

It keeps the price of domestic goods relatively low.