The correct answer to the question is option 2: Low marginal propensity to consume.

To understand why this option leads to lower multipliers, we need to look at the concept of marginal propensity to consume (MPC), which refers to the proportion of additional income that individuals choose to spend on consumption. A higher MPC means that people are more likely to spend a larger portion of their additional income, leading to higher multipliers.

On the other hand, a low marginal propensity to consume suggests that individuals are more inclined to save a larger proportion of their additional income rather than spend it. This means that less money is circulating in the economy, resulting in lower multipliers.

By saving more and consuming less, households reduce the impact of their income on overall spending in the economy. As a result, the multiplier effect, which represents the increase in total spending from an initial increase in investment or government spending, is weakened.

In this case, a lower multiplier indicates that the overall impact on the economy from an increase in spending or investment will be smaller when individuals have a low marginal propensity to consume.

Alert - correct answer should be option 4: Low marginal propensity to save.