The spending multiplier equals 1/marginal propensity to save if an economy:

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The spending multiplier equals 1/marginal propensity to save only in a closed economy that produces and consumes only domestic goods and services. In an open economy, the introduction of international trade and capital flows can complicate the relationship between saving and spending, making the spending multiplier formula more complex. A trade surplus or higher level of saving than consumption would actually decrease the spending multiplier. And reducing investment expenditures to zero would shift the aggregate demand curve leftward, reducing overall spending and potentially leading to a recession.

The Spending Multiplier Equals 1/marginal Propensity to Save If an Economy