Suppose an economy has two types of money -- gold and silver coins -- that are both legal tender but have different non- monetary values. Gresham's law has come into effect when
A) people use the higher- valued coins for exchange and the lower- valued for savings.
B) the higher- valued coin is taken out of circulation.
C) people refuse to use the coins of lesser value.
D) the value of the coins is in the same ratio as their non- monetary values.
E) the lower- valued coin is taken out of circulation.
Correct Answer:
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