The correct answer is inflation. Explanation & Key Takeaways: • The value of money declines during inflation when prices of goods and services increase continuously. • When prices generally decrease in an economy, this is called deflation. This may be due to a surplus of commodities relative to the demand for those goods, but it may also be due to an increase in the purchasing power of money. • Using debt finance is less cost-effective for firms, consumers, and governments when there is deflation. Deflation, however, boosts the financial strength of equity financing based on savings. • Long-term deflation typically hurts an economy and its customers. Hence, the correct answer is when the value of money automatically falls due to the currents of the market, it is called inflation.