Question : Which law states that bad money drives good money out of circulation?
Option 1: Wagner's law
Option 2: Grimm's law
Option 3: Gresham's law
Option 4: Keynes' law
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Correct Answer: Gresham's law
Solution : The correct option is Gresham's law.
Gresham's law states that money of lower quality will eventually replace the higher value. It's a principle commonly invoked to explain situations involving two types of value circulating concurrently, one possessing greater intrinsic worth (good money) and the other of lesser value .
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Question : Which law of economics states, "Bad money drives out good money"?
Question : Which law states that with constant taste and preference, the proportion of income spent on food stuff diminishes as income increases?
Question : Gresham's law in economics relates to ___________.
Question : Which law was formulated in 1662 and concluded that the product of pressure and volume remains almost constant?
Question : Which law was discovered in 1660, which states that for relatively small deformations of an object, the displacement or size of the deformation is directly proportional to the deforming force or load?
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