which is an effect of stagflation?\no trade with other economies increases.\no the value of a country’s…
which is an effect of stagflation?\no trade with other economies increases.\no the value of a country’s currency drops.\no prices for goods fall sharply and suddenly.\no the gdp rises along with production levels.
Answer
Brief Explanations:
Stagflation is a period of high - inflation and high - unemployment with slow economic growth. High inflation often erodes the value of a country's currency. When there is stagflation, the economy is in a poor state, which can lead to a drop in the currency's value. Trade doesn't necessarily increase, prices don't fall sharply (as there is inflation), and GDP and production levels don't rise (due to slow growth).
Answer:
The value of a country’s currency drops.