How does inflation influence an economy?

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

Respuesta :

Answer:

D

Explanation:

just did it

Inflation influences an economy as it causes the value of money to fall.

What is an inflation?

A constant escalation in the cost of goods and services is referred to as inflation.

Simply put, inflation is a decline in the value of money as a medium of exchange. Inflation, then, is what raises the cost of paying for something in the future.

If a country, for instance, had a 10% inflation rate, then, on average, something you might buy today for $100 would cost you $110 a year from now.

Hence, the correct option is D.

To learn more about inflation here

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