Which one of the following is a monetary principle stating that quot bad money drives out good quot ........

General Studies (CHSL) Indian Economy

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Which one of the following is a monetary principle stating that "bad money drives out good"?

The multiplier effect

Marshall's scissors analysis

Pareto efficiency

Gresham's law

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Explanation:

In economics, Gresham's law is a monetary principle stating that "bad money drives out good". For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will gradually disappear from circulation.