"Bad money will drive out good money from circulation." This is known as _______.

Engle's Law

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Gresham's Law

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Say' Law

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Wagner's Law

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Solution

The correct option is B Gresham's Law
The law, 'Bad money drives out good money's was given by Sir Thomas Gresham. It can be understood with a simple example- when new coins (bad money) containing less of precious metals has the same value in money terms as that of old coins (good money), these new coins are used more for transactions and the old coins are used more a collectable.

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