An important point to remember is that the size of the multiplier depends on the marginal propensities to save and import.

That is, where c is both the average and marginal propensity to consume.

If a population saves more money (that is the marginal propensity to save increases across all income levels), then total revenues for companies will decline.

Firstly, marginal propensity to consume lies between 0 and 1.

The smaller these two marginal propensities are, the larger will be the value of multiplier and vice versa.

This is called the marginal propensity to save.

Many studies have found that the marginal propensity to save is considerably higher among wealthier people.

Now let the marginal propensity to consume for the construction company be 'c'.

Second, people with higher incomes have a lower marginal propensity to consume their incomes.

"The preliminary evidence suggests that the marginal propensity to consume is about the same this time," he said.