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