How might decreases in tax rates for lower-income groups increase the multiplier?

Decreases in tax rates for lower-income groups can increase the multiplier effect by allowing these households to retain more disposable income, which they are likely to spend on essential goods and services. This increased consumption boosts demand in the economy, leading to higher production and potentially more job creation. As businesses respond to the heightened demand, the cycle continues, resulting in a larger overall economic impact compared to the initial tax cut. This amplifies the effectiveness of fiscal policy in stimulating economic growth.