A country's external wealth is equal to the difference between its foreign assets and its foreign liabilities. Suppose a country has external wealth equal to zero and decides to default on its government debt. As a result, the country will become a creditor nation and its external wealth will be positive. the country will become a creditor nation and its external wealth will be negative. the country will be neither a debtor nor a creditor and its external wealth will remain the same. the country will become a debtor nation and its external wealth will be negative. Incorrect