Problem is attached.
Construct sources and uses of funds statements for each sector of the economy and for the whole economy using the following information:
($billions) Banks & other
Current saving $428.8 $280.0 $35.0 -$35.0
Current real investment $332.5 $350.0 $17.5
investment $306.3 $78.80 $43.8 $8.80
Current borrowing $210.0 $148.8 $26.3 $43.8
Assume that the four sectors listed above are the only sectors in the economy and that there are no international transactions. Is there a statistical discrepancy? Where?
Which sectors are deficit-budget and which are surplus-budget
The solution discusses the source and uses of fund statements.