Biology Forums - Study Force

Given that Dn is the amount of deferred compensation received in lieu of $1 currently, which one of the following decision rules can the employee and the employer apply when evaluating whether deferred compensation is preferable to current salary?
A) If the employee's indifference level of Dn exceeds the employer's indifference level of Dn, the employer will pay deferred compensation up to the employee's indifference level.
B) If the employee's indifference level of Dn is less than the employer's indifference level of Dn, the employee will only receive a current salary because the employer will not pay the employee's required deferred compensation.
C) If the employee's indifference level of Dn is less than the employer's indifference level of Dn, the employer can pay deferred compensation up to its indifference level.
D) None of the decision rules in A, B, or C above hold true.

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