Gresham's Law States That When Different Forms of Commodity Money

question 21

Multiple Choice

Gresham's Law states that when different forms of commodity money circulate simultaneously (e.g.,$1 gold coins and $1 silver coins) ,

• A)the one with the more intrinsic ("commodity")value will disappear from circulation
• B)the one with the lesser intrinsic ("commodity")value will disappear from circulation
• C)both will eventually have to be withdrawn from circulation by the government
• D)the resultant disruption in the money markets will cause inflation
• E)the resultant disruption in the money markets will cause a recession

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Definitions:

Theodore Roosevelt

The 26th President of the United States, known for his progressive policies, leadership in the early 20th century, and role in mediating the end of the Russo-Japanese War.

Conservation

The sustainable management and preservation of natural resources, such as forests, water, and wildlife, to protect ecosystems and biodiversity for future generations.

Conservationist

An individual or policy focused on preserving and protecting natural resources and the environment for future generations.

Theodore Roosevelt

The 26th President of the United States, who served from 1901 to 1909, known for his progressive policies, conservation efforts, and leadership of the Rough Riders during the Spanish-American War.