If China's PPI & Disposable Income increased, how will that affect the American Economy?

Answer 1

If their Producer Price Index increases, then it becomes more expensive for them to produce goods, which makes it more expensive for the US to buy these goods.
If their disposable income increases then they will have more buying power and have more of an appetite to consume what we produce.

Both trends will reduce America's trade deficit with China.

Answer 2

If they both increased at the same time, due to rising wages, the U.S. would pay more for their products, which is better because maybe the U.S. would use more American made products, putting more money into our economy.

Answer 3

Don't think too more,just do what you should do.