In the Baumol-Tobin model,given that total costs for an individual equals + ,where T₀ = monthly income,b = brokerage costs,and C = amount raised from each bond transaction,derive the so-called square root rule.

Question

Quizplus · Accepted Answer

The Answer of In the Baumol-Tobin model,given that total costs for an individual equals + ,where T₀ = monthly income,b = brokerage costs,and C = amount raised from each bond transaction,derive the so-called square root rule.

In the Baumol-Tobin Model,given That Total Costs for an Individual