Many incorrectly assume that the overall economy's output increases by a multiple of the increase in expenditure by government, consumers, and businesses.
If out of an additional dollar received individuals spend $0.90 and save $0.10, then if consumers spending were to increase by $100 million, it is held that the overall output in the economy is going to increase by the tenfold of the increase in consumers' expenditure.
Because of the increase in consumers' expenditure by $100 million, retailers' income increases by $100 million.
Can a mere increase in the demand for consumer goods result in the increase in the overall output by the multiple of the increase in the demand? For instance, to be able to accommodate the increase in his demand for goods, saving and production must occur first.
Increases in savings, in turn, enables the increase and the enhancement of the production structure.
Could the increase in the enforcers demand result in the increase in output by the multiple of the enforcers increase in demand? On the contrary, it will impoverish everyone.
In the Keynesian framework, an increase in demand and consumption not only lifts overall output, but that output increases by a multiple of the initial increase in the demand.
https://mises.org/mises-wire/keynesian-multiplier-fairy-tale
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