Take the following as truth: Persistent U.S. current account deficits have translated into a rising level of indebtedness to other countries, i.e., net U.S. holdings of foreign assets (see figure 3.3).
Then the following statement: "Current account deficits in the U.S. have caused the country to become more and more in debt with other countries as time goes on. " is true, false, or inconclusive?
Answer: True