Question

In order to encourage its farmers, the cerian government provided them with low-interest loans for the purchase of seeds and fertilizers. the government also gave cash grants and made tax reductions. which instrument of trade policy is being used by the government of ceria?

Answer 1

The answer is "Subsidies".

A subsidy is a government installment to a local producer. Subsidies take numerous structures including money stipends, low interest, tax cuts and government value investment in household and government makers in two different ways:  

1. They enable makers to contend with imported products and  

2. Subsidies enable them to pick up fare markets. The primary additions from endowments collect to local makers, whose universal intensity is expanded because of them.