In 1992, the bilateral agreement of the United States with the European Union regarding the subsidies for production of civil aircraft included that
A. subsidies could only be in the form of loans at a market rate of interest with a short repayment period.
B. marketing subsidies could be provided to the firm, but production subsidies could not.
C. indirect government support is limited to 4 percent of a firm's civil aircraft sales.
D. direct government support for new airplane development is limited to one-tenth of the total development costs.
Answer: C
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a. True b. False
Which of the following is the most accurate statement about nominal and real interest rates?
a. Nominal and real interest rates always move together. b. Nominal and real interest rates never move together. c. Nominal and real interest rates often do not move together. d. Nominal and real interest rates always move in opposite directions.
When the money market is drawn with the value of money on the vertical axis, if the price level is below the equilibrium level, there is an
a. excess demand for money, so the price level will rise. b. excess demand for money, so the price level will fall. c. excess supply of money, so the price level will rise. d. excess supply of money, so the price level will fall.
Between 2006 and 2013, corn prices
A. rose far faster than inflation. B. rose at about the overall rate of inflation. C. remained largely constant even in nominal terms. D. rose far slower than inflation.