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In the Miller-Orr Model, _____________, the Greater Will Be the Difference

Question 339

Multiple Choice

In the Miller-Orr model, _____________, the greater will be the difference between the target cash balance and the minimum cash balance.


A) the lower the uncertainty of the cash flow per period
B) the lower the upper limit for cash balances
C) the lower the opportunity cost of holding cash
D) the lower the cost of buying and selling marketable securities
E) the higher the minimum cash balance

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