The primary driving force behind changes in external wealth is:

Question

Quizplus · Accepted Answer

Changes in external wealth are primarily driven by imbalances between a nation's total income and its total spending. When a country spends more than it earns, it is forced to borrow from foreign sources, leading to a decline in external wealth. Conversely, if a country earns more than it spends, it can lend to foreign countries and increase its external wealth. Therefore, a nation's current account balance (the difference between its total exports and imports) is a key determinant of its external wealth.

The Primary Driving Force Behind Changes in External Wealth Is