Assuming all else equal, if a firm decides to pay more dividends and lowers the amount of retained earnings it holds, it will cause:
A) an upward movement along the current credit supply curve of the firm.
B) a downward movement along the current credit supply curve of the firm.
C) the current credit supply curve of the firm to shift to the left.
D) the current credit supply curve of the firm to shift to the right.
C
You might also like to view...
If the institutions in an economy decide to limit the legal back up that protected the interest of entrepreneurs, the returns-to-entrepreneurship curve in the economy will:
A) shift leftward. B) shift rightward. C) become vertical. D) become horizontal.
One reason that monopolistically competitive firms often use celebrity endorsements is that:
a. the firm owners like to be around celebrities so they can feel important. b. they can link their product's reputation with the celebrity's reputation. c. celebrity endorsements are comparatively inexpensive. d. they can have the celebrity as their potential customer. e. firms like to spend a lot on advertisements.