Answered

IDNLearn.com offers a comprehensive platform for finding and sharing knowledge. Our Q&A platform offers reliable and thorough answers to help you make informed decisions quickly and easily.

How does inflation influence an economy?

A. It causes international trade to rise.
B. It causes unemployment rates to fall.
C. It causes the value of money to fall.
D. It causes the price of goods to decline.

Sagot :

GinnyAnsweridn

Final answer:

Inflation causes the value of money to fall, reducing its purchasing power and impacting international trade.


Explanation:

Inflation influences an economy by causing the value of money to fall. As prices rise due to inflation, the purchasing power of money decreases, leading to a situation where the same amount of money buys fewer goods and services. This can impact international trade by affecting exchange rates and trade balances.


Learn more about Inflation's influence on an economy here:

https://brainly.com/question/50992392


Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. Thank you for choosing IDNLearn.com for your queries. We’re here to provide accurate answers, so visit us again soon.