Author Question: An orthodox model calls for cutting government spending, reforming the tax system to increase ... (Read 48 times)

mrsjacobs44 · **on:** Jun 30, 2018

An orthodox model calls for cutting government spending, reforming the tax system to increase compliance and revenues, and limiting the creation of new money.

Indicate whether the statement is true or false

Question 2

Suppose that the United States decided to subsidize a major research and development effort by U.S. firms in the semiconductor industry. Under the current rules of the WTO and GATT, the U.S. effort is

A) allowed as long as the subsidies are a small percent of the total cost.
B) allowed as long as the subsidies do not involve a direct payment to the industry.
C) not allowed.
D) neither allowed nor disallowed.
E) allowed as long as the subsidies are for developing a precompetitive technology.