Depends on who does the flagging, I think. Some flags are, like, an instant 10-spot demote. Some kick it from the 'news' section of the site completely (but still visible in 'newest').
I suspect there's a 'small flag', too, that doesn't drop the post's ranking unless enough small flags are accumulated.
I suspect there's a 'small flag', too, that doesn't drop the post's ranking unless enough small flags are accumulated.
It's all a bit blackboxy :)