If in fiscal year 2015, the federal government receives $2.2 trillion in revenues and spends $3.5 trillion for goods and services, the national debt will

A merger between two companies in unrelated fields of business

A) will always lead to economies of scale. B) will generally increase the value of the unified firm compared to the value of the two companies before the merger because of the benefits of diversification. C) may not have any synergistic effects. D) will necessarily lead to an increase in the market power of the merged company.

The creation of the European Monetary Union in 1999 lowered nominal interest rates in countries like Italy, because:

a. The creation of a supranational central bank reduced expected inflation. b. The supranational central bank increased the money supply rapidly, thereby causing interest rates to fall. c. Actually, interest rates in Italy exploded after the creation of the European Monetary Union, due to the lack of initial confidence in the European Central Bank. d. All of the above. e. None of the above.