Assume goods X and Y are complements. A decrease in the price of X would cause the demand for Y to increase

When the current account is in deficit, the capital account must

A. be balanced. B. be zero. C. not add to the deficit. D. have an equal and offsetting surplus.

Risk premiums do all of the following except

A. Help explain why banks charge different customers different interest rates. B. Allocate limited resources only to the safest investors. C. Compensate people who finance risky ventures. D. Are the difference in the rates of return on risky and safe investments.