Answered

Get personalized answers to your specific questions with IDNLearn.com. Join our interactive Q&A platform to receive prompt and accurate responses from experienced professionals in various fields.

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


We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com is committed to your satisfaction. Thank you for visiting, and see you next time for more helpful answers.