Concerning the Baumol Model,which of the Following Is Not Correct

question 23

Multiple Choice

Concerning the Baumol model,which of the following is not correct (all other things equal) ?

• A)The optimum cash balance is higher the higher are interest rates.
• B)The optimum cash balance is higher the higher are fixed order costs.
• C)The optimum cash balance is higher the higher is the firm's total cash requirement.
• D)Two of the above are not correct.
• E)All of the above are correct.

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Definitions:

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Ringing heard in one or both ears.

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