In the Baumol-Tobin model, if the nominal interest rate is 0.05, the cost of trips to the bank is $12, and expenditures equals $48,000, then average money holdings equal:
A)$980.
B)$2,400.
C)$3,394.
D)$4,000.

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The Answer of In the Baumol-Tobin model, if the nominal interest rate is 0.05, the cost of trips to the bank is $12, and expenditures equals $48,000, then average money holdings equal:
A)$980.
B)$2,400.
C)$3,394.
D)$4,000.

In the Baumol-Tobin Model, If the Nominal Interest Rate Is