McqMate
| Q. |
'Gresham's Law' in Economics relates to |
| A. | supply and demand |
| B. | circulation of currency |
| C. | consumption of supply |
| D. | distribution of goods and services |
| Answer» B. circulation of currency | |
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Explanation: Gresham's law is an economic principle that states: "When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear, from circulation into hoards, while the over-valued money will flood into circulation." It is commonly stated as: "Bad money drives out good." |
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