The observation that 'bad money drives out good' is known as which law?

Say's lawCorrect answerYour answerOkun's lawCorrect answerYour answerEngel's lawCorrect answerYour answerGresham's lawCorrect answerYour answer

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CorrectNot quiteAnswer D

Correct answer: D

Gresham's law says that when two coins circulate at the same official value but differ in metal content, people spend the debased one and hoard the sound one.
The good money therefore disappears from circulation, leaving the bad in use.
It holds only where the law forces both to be accepted at the same value.

Worth noting

Engel's law is the separate observation that the share of income spent on food falls as income rises.

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