The passage explains that in harsh economic times consumers tends to decrease their monthly spending which in turn increases sales of the discount retails stores. However, during extreme economic hardship business at discount stores doesn't improve rather may suffer more.
The best statement that completes the passage, lets analyze:
A. During extreme economic hardship, businesses that are located near discount stores and which also cater to lower spending levels also suffer.
Irrelevant to the passage. Eliminate
B. The lower overall levels of consumer spending are, the more discount stores will benefit.
This is opposite to what passage is conveying. Eliminate
C. When discount stores flourish, they may be able to hire additional staff and raise effective wages.
Irrelevant to the passage. Eliminate
D. During extreme economic hardship, consumers may continue to reduce total spending even after they have shifted their purchases to the most economic outlets available.
This explains why discount stores business will not improve and may even suffer. D is the correct answer
E. Except during periods of extreme economic hardship, discount stores tend to thrive more in economies benefitting from a direct economic stimulus, which increases spending cash.
It is opposite to what has been explained in passage. Eliminate
Correct answer is D.