Relaxation of Credit Policy Results In

question 95

Multiple Choice

Relaxation of credit policy results in:

• A)an increase in credit sales.
• B)a decrease in credit expenses.
• C)a decrease in investment in receivables.
• D)b and c
• E)All of the above

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Definitions:

Gasoline

A flammable liquid derived from petroleum, used mainly as fuel in most internal combustion engines.

Perfectly Inelastic

A situation where the quantity demanded or supplied of a good is unaffected by changes in its price.

Upward-Sloping

A term often used in economics to describe a graph line that represents an increase in one variable as another variable increases, typically applied to supply curves.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.