One of the key reasons that imports of certain finished goods of category A in country X have increased significantly is that it’s cheaper for country X’s retailers to import these goods than to purchase the same from local manufacturers. Hence, as it often happens, because of these increased imports, the value of country X’s currency has correspondingly decreased, making critical imports such as steel more expensive for the country.
The information above supports which of the following hypothesis about country X?
A. An additional significant import tariff on goods in category A will likely help increase the value of currency of country X in the coming future.
B. Appropriately subsidizing industries that import steel is likely to negate any impact that country X's currency devaluation has had on its GDP.
C. Due to increased imports of category A goods, many consumers in country X have experienced lower prices than they paid before.
D. The loss in local production of goods caused by corresponding increased imports has not had as severe an impact on the GDP of country X as has the increase in steel prices.
E. To prevent any further reduction in its currency's value, country X must restrict imports more severely than it currently does.
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