nj3013319 nj3013319

17-05-2024
Social Studies

Answered

What is one effect of inflation on an economy?
A. The price of goods rises over time.
B. The value of currency rises quickly.
OC. The unemployment rate goes down slowly.
OD. The amount of international trade declines.

Answer :

GinnyAnswer GinnyAnswer

17-05-2024

Final answer:

Inflation decreases purchasing power and affects currency value and international trade.

Explanation:

Inflation occurs when the price of goods and services rise, leading to a decrease in the purchasing power of money. As a result, individuals can buy fewer goods and services with the same amount of money. Inflation can have various effects on an economy, such as impacting the value of currency and influencing international trade.

Learn more about Effects of inflation on an economy here:

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