Which of the following is consistent with the predictions of Gresham\'s law? A.

Question

Which of the following is consistent with the predictions of Gresham's law? A. The increased circulation of U.S. coins in Canada during periods when the Canadian dollar is worth significantly less than the U.S. dollar. B. An increase in the money supply will be followed by inflation. C. The disappearance of U.S. coins circulating in Canada during periods when the Canadian dollar is worth less than the U.S. dollar. D. Increases in the money supply led to the hyperinflation of the 1920s in Germany. E. Debasement of a metallic money will be followed by inflation.

Explanation / Answer

The disappearance of U.S. coins circulating in Canada during periods when the Canadian dollar is worth less than the U.S. dollar

is the answer

as Greshman's law states that bad money with low intrinsic value will drives out the good money

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