According to the consumption function,
what variables determine aggregate spending on consumer goods and services?
a. consumer spending depends on disposable income, the real interest rate, and other variables such as consumers' optimism and wealth.
b. consumer spending depends on disposable income, the real interest rate, and the export-to-import ratio.
c. consumer spending depends only on disposable income and the real interest rate.
d. none of the above are correct.

Emery pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. emery uses 825 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be $48 per order. the cost schedules of two suppliers are as follows: vendor 1 vendor 2 quantity price/lb quantity price/lb 1-499 $17 1-399 $17.10 500-999 $16.75 400-799 $16.85 1000+ $16.50 800-1199 $16.60 1200+ $16.25 (a) what is the economic order quantity for each supplier? (b) what quantity should be ordered and which supplier should be used? (c) the total cost for the most economic order sire is $