THE CORRECT ANSWER IS D. THE CITIZENS OF COUNTRY Y OFTEN TAKE VACA...
21. The correct answer is D.
The citizens of Country Y often take vacations in Country X because
the exchange rate makes Country X cheaper for citizens of Country
Y. But citizens of Country Y rarely buy clothes or electronics in
Country X, despite the fact that these items are cheaper in Country
X, even with sales tax. We are asked to find a choice that could
explain this behavior.
Choice D states that the government of Country Y imposes tariffs on
imported goods. This suggests that perhaps items that are
purchased in Country X and brought into Country Y become
prohibitively expensive because of the tariffs. This could explain the
spending habits of citizens of Country Y. Correct.