A firm might prefer to choose a salary system rather than a commission or piece-rate system of compensation when there are concerns about output quality

Changes in which of the following change the demand for capital and shifts the demand curve for capital?

A) current income B) expected future income C) the rental rate D) the marginal product of capital

The expected real interest rate (re) in terms of the nominal interest rate (R) and the expected inflation rate (?e) is given by

A) re = ?e + R. B) re = 2?e + R2. C) re = ?e + R2. D) re = R - ?e. E) re = R2 - ?e.