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There is also a multiplier for government spending

There is also a multiplier for government spending - ....

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There is also a multiplier for government spending. This multiplier is derived in a  different way. When the government increases purchases, it directly increases output, or  national income. But, there is a greater effect than just the actual amount of increase in  government purchases. When the government spends more, the populace receives  more. That is, because the population is the target of increased government spending,  personal incomes, and thus consumption, increases. Once again, the size of this  increase is based on the MPC. The total change in output as a result of a change in  government purchases is equal to (change in government purchases) / (1 - MPC). This  number is called the government spending multiplier.  Let us work through a couple of examples. The first one will deal with tax policy. What is  the total change in output from a tax cut of $20 million if the MPC is 0.8? To solve this, 
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