Now shopping mall giant (Dalian) Wanda, owned by Chinaâs richest man Wang Jianlin, and Vanke, the worldâs biggest residential real estate developer, founded by the mountaineering-loving Wang Shi, have âstunned the capital markets,â in the words of Chinese news site The Paper, by announcing a âstrategic partnership.â.
The second macroeconomic consideration of increased imports is the impact on exchange rates. As we have shown in the previous section, as U.S. consumers increase their consumption of imports, the supply of dollars in foreign exchange markets rises.
Macroeconomics The Multiplier Effect of Fiscal Policy Multiplier Process Initially, the tax cut raises disposable income by one dollar, which raises consumption demand. Firms produce to meet demand, so national product rises. National income equals national product, so national income necessarily rises by the same amount.