The multiplier effect can manifest itself in a variety of ways, including government spending, export income, consumer spending, and so on. The following are two common examples of the multiplier effect:
Bank lending
When a customer deposits money in a bank, the bank must keep a portion of it (the reserve requirement), but the rest is free to lend to other customers. Customers can spend the money, and it will eventually be deposited in another bank.

Because of the reserve requirement, a portion of the new deposit will be reserved by the new bank, while the remainder will be loaned. This process will continue until the entire initial deposit is deposited in banks. The initial deposit has been multiplied and used several times as a result of this process.
Company spending
If a company achieves exceptional success with an investment in a new product line, the multiplier effect can be seen in the increased business of other companies that contribute to the new product (by producing raw materials or transport, for example).

Employees of the company may also see salary increases, which would lead to increased consumer spending. The impact on GDP is thus expanded beyond the product line's initial success.