Correct Option: B

When the prices of commodities, goods and services start declining consistently, the phenomenon is known as deflation. Deflation is because of fall in the aggregate level of demand. That is, there is a fall in how much the whole economy is willing to buy and the price for goods, Because the price of goods is falling, consumers have an incentive to delay purchases and consumption until prices fall further, which in turn reduces overall economic activity. Since this idles the productive capacity, investment also falls, leading to further reductions in aggregate demand.