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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For monetary policy to be effective in changing planned investment spending:
a. interest rates must not be responsive to changes in the money supply. b. interest rates must be sensitive to changes in Gross Domestic Product. c. investment must be sensitive to changes in interest rates d. investment must be sensitive to changes in the price level. e. interest rates must be sensitive to changes in the price level.
With base year 1990, the index of industrial production for the year 1999 is 112. What will be the value of the index in 1999, if the base year is changed to 1982 and the index measured 96 in 1982?
A. 112.24 B. 116.66 C. 85.71 D. 92.09