What is the present value of a nation's net external wealth?
A) It is gold, plus outstanding currency, plus foreign currency reserves in the nation.
B) It is the present and future real GDP discounted to present value.
C) It is the average real income per capita times the average work span times the rate of economic growth.
D) It is the sum (discounted to the present) of future trade deficits or surpluses.

Question

Quizplus · Accepted Answer

The present value of a nation's net external wealth is calculated as the sum (discounted to the present) of future trade deficits or surpluses. This reflects the nation's ability to generate wealth through its international trade activities over time.

What Is the Present Value of a Nation's Net External