Define carefully the concept of a nation’s external wealth and explain how it varies with the current account and capital gains on external wealth What happens to a country’s wealth if it tends to run...

Define carefully the concept of a nation’s external wealth and explain how it varies with the current account and capital gains on external wealth What happens to a country’s wealth if it tends to run a CA surplus every year? Explain the long-run budget constraint and what it implies must happen for such a country over time