_____ can lead to a damaging downward spiral, causing a freefall in business profits, lower returns on most investments, and widespread job layoffs.

Question

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Deflation can lead to a damaging downward spiral as it typically results in decreased consumer spending, reduced business revenues, and can cause businesses to cut costs by laying off workers, further reducing demand and economic activity.

_____ Can Lead to a Damaging Downward Spiral, Causing a Freefall