Answer:Deflation is when the general price levels in a country are falling—as opposed to inflation when prices rise.
If deflation occurs, people choose to hold on to savings instead of spending it today, since prices will be lower tomorrow—even lower next week, and even lower in a month.
As a result, a vicious cycle can ensue that drags an economy into recession or depression as economic activity grinds to a halt.
Step-by-step explanation: