In regards to the Miller-Orr Model, the higher the interest rate, the lower the target cash balance.

Name: In regards to the Miller-Orr Model, the higher the interest rate, the lower the target cash balance.
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The Miller-Orr Model suggests that as interest rates increase, the opportunity cost of holding cash increases, leading to a lower target cash balance as firms seek to minimize this cost.

In Regards to the Miller-Orr Model, the Higher the Interest