It’s a fairly basic premise of macroeconomics that a dollar injected into the economy produces greater than one dollar of net GDP increase. The money multiplier

It’s a fairly basic premise of macroeconomics that a dollar injected into the economy produces greater than one dollar of net GDP increase. The money multiplier is usually discussed in terms of government spending, or the central bank printing money, but it is true at the consumer level as well, for example, when measuring the economic impact of a tax cut. And interesting side point is that the multiplier (obviously) is much lower as the savings rate increases, and also if the cash infusion is used mostly to pay down debt, because neither will translate into further spending cycles. So when confidence is high and interest rates are low, the money multiplier will be at its highest.