All Else Equal, a Firm That Purchases Raw Materials on Credit

Multiple Choice

All else equal, a firm that purchases raw materials on credit will experience:

A) a decrease in trade credit with a given increase in purchases.
B) no change in trade credit with a given increase in purchases.
C) an increase in trade credit with a given increase in purchases.
D) no change in trade credit with a given decrease in purchases.
E) an increase in trade credit with a given decrease in purchases.