If expected income
is:

People will
consume:

People expect to
save:

People expect to pay as
taxes:

Business will want to
invest:

Government will
spend:

980

724

148

108

216

50

1030

752

160

118

228

50

1080

780

172

128

240

50

1130

808

184

138

252

50

If government spending increases by 10 in the table
above, equilibrium increases from 1030 to 1080. Therefore
the multiplier in this model is:
1
1.8
2.3
5
10
