By acquiring new software, Germany transfers $100 to the US. If the United States has a spending multiplier of 5, the overall increase in spending will be $500.
Government impulsively spends $100 billion on goods and services, possibly because they are upbeat about the future. The income of those who generate those goods and services rises by that amount. They utilize that money to cover their expenses, the wages and salaries of their employees, the rent they owe their landlords, and the cost of the raw commodities they use. Each of these economic agents takes some of their newfound wealth and spends it. The multiplier can be used for any form of spending (such as C + I + G + X-M), and it works both for increases and decreases in expenditure.
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