which is an effect of stagflation?\no trade with other economies increases.\no the value of a countrys…

which is an effect of stagflation?\no trade with other economies increases.\no the value of a countrys currency drops.\no prices for goods fall sharply and suddenly.\no the gdp rises along with production levels.

which is an effect of stagflation?\no trade with other economies increases.\no the value of a countrys 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 erodes the purchasing power of a country's currency, causing its value to drop in the international market.

Answer:

The value of a country's currency drops.