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If the Baumol-Tobin model of money demand is correct, then as the interest rate increases:
Accounting Adjustments
Entries made in the books of accounts to accurately reflect the revenues and expenses for a given period, including accruals, deferrals, and estimates.
Account Balances
The amounts of money in an account, representing assets or liabilities at a particular point in time.
Pro Forma Statements
Financial statements that project a company's financial performance in the future, based on certain assumptions or hypothetical conditions.
Financial Statements
Formal records that detail the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.
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