Explain how you would incorporate these facts about households and firms into the multiplier model. Use a diagram to illustrate.

i) Homebuilding companies are reporting the best conditions in more than three decades.

ii) Households are withdrawing equity from their houses and mortgages are very cheap

iii) In aggregate, households have increased their deposits at banks since the pandemic began and household debt service ratios are historically low

iv) In aggregate, businesses have twice as much accumulated cash as they have had for many decades

Can you give me a brief answer for this? I'd like to know how these four facts would influence the multiplier model!