Suppose That the United States Decided to Subsidize a Major

Multiple Choice

Suppose that the United States decided to subsidize a major competitive effort by the semiconductor industry to bring to market the next generation computer chip.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 do not succeed in creating a new product.