If a country runs current account deficits from year to year then, all else equal, its net foreign assets will Falls/ decreases by the same amount in all years.
The difference between a sum and a benchmark amount is referred to as a deficit. The amount by which spending exceeds income during a specific period of time is known as a budget deficit, usually referred to as a simple deficit. This is the polar opposite of a budget surplus. The phrase can be used to describe a person's, a company's, or a government's budget. A country's net foreign asset (NFA) position is calculated as the value of its foreign assets less the value of its domestic assets held by foreigners. The amount of debt a country has is reflected in its net foreign assets position.
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