A Collapse in Buldovia's Banking System Eventually Led to Companies

Multiple Choice

A collapse in Buldovia's banking system eventually led to companies unable to borrow money to run their businesses. Firms terminated employees. These circumstances cut into consumer's purchasing power, causing a severe decline in the prices of goods and services, better known as _______.

A) disinflation.
B) deflation.
C) contra inflation.
D) overproduction.