Which of the following is NOT one of the Baumol Model's unrealistic assumptions?
A) The firm has a constant, perfectly predictable distribution rate for cash.
B) No cash will come in during the period in question.
C) No allowance for any safety stock of extra cash to buffer the firm against unexpectedly high demand for cash.
D) No assumption to start from a replenishment level of cash then decline smoothly to a value of zero.
Correct Answer:
Verified
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