The correct answer is option 2: Hedging. In economics, hedging is a technique or strategy used to avoid or minimize risk by making counteracting transactions. It involves taking positions in the market that offset the potential losses of another investment or asset.

Option 1: Dumping is not the correct answer. Dumping refers to the practice of selling goods or products in a foreign market at a price lower than the production cost or the price in the domestic market. It is often considered as an unfair trade practice.

Option 3: Discounting is not the correct answer. Discounting is a financial term that refers to the process of determining the present value of future cash flows by applying a discount rate. It is commonly used in calculating the value of future income or cash inflows.

Option 4: Deflating is not the correct answer. Deflating refers to a decrease in the general price level of goods and services in an economy. It is the opposite of inflation and can have various causes such as decreased demand or increased production efficiency.

In summary, hedging is the specific term in economics used to denote the technique of avoiding risk by making counteracting transactions.