Question: Using Baumol-Tobin transactions demand model, determine the optimal strategy for cash management for a person who earns RM1,600 per month, can earn 0.5% interest per

Using Baumol-Tobin transactions demand model, determine the optimal strategy for cash management for a person who earns RM1,600 per month, can earn 0.5% interest per month in a saving account, and has a transaction costs of RM1.

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