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.
If they are pulling in opposite directions, than the result will not be achieved. If the fiscal policy is expansionary (meaning government expenditure is more than its tax collection), it leads to increase in aggregate demand. Following scenarios can be worked out: 1. Tax remain same, Government expenditure increases: This leads to rise in demand foe goods and services bought by government.