The policy of Sending Home Appliances to the Countryside is in part effective to enlarge domestic rural cosumption demand,but it is invalid in long term. Income is the decisive factor influencing cosumption demand. When peasants＇ savings is low,any policy that cann＇t increase their income is not able to start completely rural market. Accordingly,we cann＇t overestimate the significance of Sending Home Appliances to the Countryside and the potential of rural market, or neglect the bad effect of home appliances occupying other commodities, nor can we underestimate peasants rational behavior. Expanding investment demand is the second best selection of extending domestic demand. When consumption demand is insufficient, infrastructure investment should be further expanded, general investment should be transferred into facilities,and non-governmental investment should be activated.
