Suppose That the United States Decided to Subsidize a Major

Multiple Choice

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) allowed as long as the subsidies are for developing a "precompetitive" technology.