If households reduce money balances, then their transactions costs go up.

Name: If households reduce money balances, then their transactions costs go up.
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If households reduce their money balances, they may need to make more frequent trips to the bank or ATM to withdraw cash, which can increase their transactions costs. Additionally, if they rely more on credit cards or other forms of electronic payment, they may incur fees or interest charges that they wouldn't have if they were paying in cash.

If Households Reduce Money Balances, Then Their Transactions Costs Go