 If a $1 increase in M0 by the Federal Reserve causes M2 to increase by $10, then the money multiplier is 10.Multipliers can be calculated to analyze the effects of fiscal policy, or other exogenous changes in spending, on aggregate output.For example, if an increase in German government spending by €100, with no change in tax rates, causes German GDP to increase by €150, then the "spending multiplier" is 1.5.