In the Baumol-Tobin view, an increase in interest rates will cause individuals to hold

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In the Baumol-Tobin model, an increase in interest rates makes holding cash more expensive (since you're missing out on the interest you could be earning). Therefore, individuals will choose to hold smaller money balances to minimize this opportunity cost, and as a result, the velocity of money (how quickly money circulates in the economy) will increase because money is being used more efficiently.

In the Baumol-Tobin View, an Increase in Interest Rates Will