All of the Following Are Assumptions of the Baumol Model

question 30

Multiple Choice

All of the following are assumptions of the Baumol Model except:

• A)The firm uses cash at a steady,predictable rate
• B)The firm's net cash outflows occur at a steady rate
• C)The firm's cash inflows from operations occur at a steady,predictable rate
• D)The optimum cash balance the firm should hold

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