To conduct monetary policy, it's open market operations. Buying and selling of federal government bonds to influence the money supply in the rate of interest. These operations are responsibility of Federal Open Market Committee. Ask google for more friend, hope I helped!
Answer:
Following are the solution to the given points:
Explanation:
For point a:
After-tax profit for each country.
For Country X:
![Tax \ [ 2,500,000 \times 20\% \ ] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 500,000\\\\ After-tax\ \ profit\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,000,000](https://tex.z-dn.net/?f=Tax%20%5C%20%5B%202%2C500%2C000%20%5Ctimes%2020%5C%25%20%5C%20%5D%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20500%2C000%5C%5C%5C%5C%20After-tax%5C%20%5C%20profit%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%202%2C000%2C000)
For Country Y:

![Pre-tax\ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,200,000\\\\Tax\ [40,00,000 \times 10\%] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 400,000 \\\\After-tax\ \ profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,800,000](https://tex.z-dn.net/?f=Pre-tax%5C%20%5C%20Profit%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%202%2C200%2C000%5C%5C%5C%5CTax%5C%20%20%5B40%2C00%2C000%20%5Ctimes%2010%5C%25%5D%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%20400%2C000%20%5C%5C%5C%5CAfter-tax%5C%20%5C%20profit%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%5C%20%201%2C800%2C000)
For point b:
For Country X:
Lardo is expected to establish its new plant in Country X, because Country X's after tax income is higher than Country y's after-tax income [$1,800,000].
Answer:
$69,000
Explanation:
The computation of the operating income would be shown below:
= Buying cost - making cost
where,
Buying cost equals to
= 60,000 × $3
= $180,000
And, the making cost would be
= Variable cost + fixed cost × avoid percentage
= $90,000 + $70,000 × 30%
= $90,000 + $21,000
= $111,000
Now put these values to the above formula
So, the value would equal to
= $180,000 - $111,000
= $69,000
Answer:
I believe it is A
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