Assuming all else equal, if a firm decides to pay more dividends and l

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.

ANSWER

C