6. The national wealth ofa country equals its physical assets, such as capital, plus its net foreign
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6. The national wealth ofa country equals its physical assets, such as capital, plus its net foreign assets. National wealth increases in two ways: through changes in the value of existing assets and through national saving. National saving adds to national wealth because national saving, is used either for investment, thus adding to physical capital, or for lending to foreigners an amount that equals the current account balance, which increases the country’s net foreign assets.
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Macroeconomics Plus Myeconlab With Pearson Global Edition
ISBN: 377221
9th Canadian Edition
Authors: Andrew B. Abel ,Ben Bernanke ,Dean Croushore
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