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

Question

Quizplus · Accepted Answer

Deflation can lead to a damaging downward spiral as it causes consumers to delay purchases, expecting lower prices, which reduces business revenues and profits, leading to layoffs and lower investment returns.

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