Multiple Choice
In the Baumol-Tobin model, the optimal number of trips to the bank is determined by minimizing the total costs of holding money that are the:
A) forgone interest.
B) costs of trips to the bank.
C) forgone interest plus the costs of trips to the bank.
D) costs of trips to the bank minus the forgone interest.
Correct Answer:
Verified
Correct Answer:
Verified
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