be put forward to their representative. Now if C as a group is again the supply related demanders, the similar visiting process will continue. Indeed the process will continue infinitely if the successive demanders are always supply related demanders. However if C as a group is an autonomous demander, that is, the demander without related -supplies, we then reach to the end The conclusion is that the current supply related demand of A is ultimately due to the past autonomous demand of C The above case may be too simple. a more practical one is that a part of C, indeed also a part of B, are autonomous demanders and the others are supply related demanders. In this case, the visiting process may continue, but it seems unnecessary because the basic result has al ready been clear We can view any current supply related demand to be caused, either directly or indirectly, by the past autonomous demand, not necessarily of one type and of one period. Specifically, D4=f(G1,G1G12…G1,k…) where G, is the total demand in period t and g, the autonomous demand in t IV. The Process of Market Exchange, a Forward Exposition The Starting Point of Market Exchange. The above way to express the market exchange process that I argue to be a multiplier process is a backward way. Indeed, it is not immediately clear why a"multiplier"applies here. However if current demands are viewed as caused by past autonomous demands, it also means that each autonomous demand -so long as it is injected into the economy -will stir up a chain of reflections. by the chain of reflections, we mean the sequence of market exchanges that reflects the initial activ ity of that autonomous demand. 8 7. Elsewhere( Gong, 1994b), the linearized vers ion of equation(2)has been tested using U. S It tums out that the equation is statistically very significant with the adjusted R- almost equal to one after correcting the serial correlation 8. We will express this reflection chain in detail later10 be put forward to their representative. Now if C as a group is again the supply related demanders, the similar visiting process will continue. Indeed the process will continue infinitely if the successive demanders are always supply related demanders. However if C as a group is an autonomous demander, that is, the demander without related-supplies, we then reach to the end. The conclusion is that the current supply related demand of A is ultimately due to the past autonomous demand of C. The above case may be too simple. A more practical one is that a part of C, indeed also a part of B, are autonomous demanders and the others are supply related demanders. In this case, the visiting process may continue, but it seems unnecessary because the basic result has already been clear: We can view any current supply related demand to be caused, either directly or indirectly, by the past autonomous demand, not necessarily of one type and of one period. Specifically, (2) Dt Gt Gt Gt Gt k = f ( , , , , , ) -1 -2  -  , where Gt is the total demand in period t and Gt the autonomous demand in t. 7 IV. The Process of Market Exchange, a Forward Exposition The Starting Point of Market Exchange. The above way to express the market exchange process that I argue to be a multiplier process is a backward way. Indeed, it is not immediately clear why a "multiplier" applies here. However if current demands are viewed as caused by past autonomous demands, it also means that each autonomous demand ⎯ so long as it is injected into the economy ⎯ will stir up a chain of reflections. By the chain of reflections, we mean the sequence of market exchanges that reflects the initial activity of that autonomous demand.8 7 . Elsewhere (Gong, 1994b), the linearized version of equation (2) has been tested using U. S. macro time series data. It turns out that the equation is statistically very significant with the adjusted R 2 almost equal to one after correcting the serial correlation. 8 . We will express this reflection chain in detail later