In 1992, the Bilateral Agreement of the U

Multiple Choice

In 1992, the bilateral agreement of the U.S. with the European Union regarding the subsidies for production of civil aircraft included that:

A) direct government support for new airplane development are limited to one-tenth of the total development costs.
B) indirect government support is limited to four percent of a firm's civil aircraft sales.
C) only production but no marketing subsidies could be provided to the firm.
D) subsidies could only be in the form of loans at a market rate of interest with a short repayment period.